What’s Next for Bitcoin After One Month Of Negative Funding Rates?
Bitcoin fund rates fell below neutral last month. Prior to that, fund rates fluctuated below neutral for a long time. As digital asset prices continue to struggle, this new trend has lasted longer than expected. In this report, we will look at the state of Bitcoin financial rates and the implications if the current trend continues. The digital asset was still trading above $ 30,000 when bitcoin funds first dipped below neutral in June. Since then, the digital currency has lost more than $ 10,000 of its value and continues to struggle to surpass its previous highs.
However, despite recording small upward revisions, fund rates were unchanged. At the time of writing, the rates were already below neutral for a full month. Binance and Bitcoin are the most important financing platforms, and cryptocurrency exchanges last saw financial indices at neutral levels after Bitcoin’s fall to $ 30,000 in mid-June. Conversely, financial rates began to reflect price changes and did not recover after them. Some positive sentiment has returned to the market as the price of Bitcoin has broken over $ 20,000. However, there is not much support at the moment and it is shaky because bears can easily push the price lower.
This is why the decline in Bitcoin funding rates is a cause for concern. Of course, financial ratios will rise as the prices of digital assets fall. But so far it has been the opposite, i.e. no new money flowed into space. Also, inflation was higher than expected in Wednesday’s CPI report. Although this caused an increase in the price of Bitcoin, it was short-lived. To keep this up, the market should see more buying momentum.
Read more: Although there is still pressure on bitcoin miners to sell, falling production costs offer relief.
