Bitcoin Decline Sees Funding Rates Plunge To Three-Month Lows

Name	Symbol	Market	Market Cap ($)	Algorithm
Mina	MINAUSD	Crypto	801,884,030	Not Mineable

Name

Symbol

Market

Market Cap ($)

Algorithm

Mina

MINAUSD

Crypto

801,884,030

Not Mineable

	Price Change	Price Change %	Current Price	Bid Price	Offer
	-0.034	-4.29%	0.759	0.758	0.759

Price Change

Price Change %

Current Price

Bid Price

Offer

-0.034

-4.29%

0.759

0.758

0.759

High Price	Low Price	Open Price	Prev. Close	52 Week Range
0.797	0.732	0.793	0.793	0.349000 - 1.73

High Price

Low Price

Open Price

Prev. Close

52 Week Range

0.797

0.732

0.793

0.349000 - 1.73

Exchange	Last Trade	Size	Trade Price	Currency
GDAX	11:15:05	295.79	0.759	USD

Exchange

Last Trade

Size

Trade Price

Currency

GDAX

11:15:05

295.79

0.759

USD

Price x Volume	Volume	Base Symbol	Related Pairs
486,939.33	640,974.68	MINA	MINAEUR	MINAGBP	MINABTC

Price x Volume

Volume

Base Symbol

Related Pairs

486,939.33

640,974.68

Bitcoin Decline Sees Funding Rates Plunge To Three-Month Lows

09/06/2022 6:00pm

NEWSBTC

Bitcoin funding rates have taken a nosedive after massive sell-offs at the beginning of the week. Bitcoin had made a remarkable recovery coming out of a slow weekend but these sell-offs would quickly wipe off all of the gains made, and with it, the funding rates came crashing down. It led to one of the most brutal crashes in funding rates in recent history. This has seen it touch one of its lowest points since February. Factors Behind Decline The bitcoin funding rates had plummeted due to the sell-offs that were recorded on Monday night. Most notably had been the plunge in crypto exchange Bybit which had declined to its three-month low of -0.0378%. It represented one of the largest declines of all cryptocurrency exchanges, of which Binance’s levels had stopped at 0.01378%. This sent funding rates to February 2nd levels, although stopping at a higher low compared to the carnage witnessed on May 12th. Related Reading | Bitcoin Miner Revenues Stay Low As Price Decline Continues These negative funding rates persisted throughout the week before culminating in the June decline. Bybit and Binance have both seen negative rates due to the lagging on the perpetual spot markets. It shows a high correlation to the price of the digital asset which had fallen back below $31,000 on Monday night to land at $29,000. BTC funding rates see sharp decline | Source: Arcane Research Funding rates on the Binance exchange have now been at the neutral to negative levels for half a year now. This is a new record for the exchange after enjoying some of the best months in the year 2021. The funding rates overall have been in the neutral to below neutral levels for the better part of 2022 and this does not seem to be changing anytime soon. Bitcoin Trend After Decline The decline in the funding rates coincided with the decline in the price of the digital asset. Bitcoin which had been making steady gains had lost all of it on Monday and returned to the $29,000. However, this would not hold for long as the digital asset would start a reversal that would put it back above $30,000 by the end of Wednesday. BTC settles above $30,000 | Source: BTCUSD on TradingView.com This recovery is also credited to the fact that investors are returning back to BTC to seek safe haven. Altcoins had been the winners of the 2021 bull rallies but with the 2022 bear market had come massive losses and as such, investors had moved on to strong digital assets such as bitcoin. Related Reading | U.S. Macro Pressure Responsible For Entire Bitcoin Downtrend With this, bitcoin is now trading above its 20-day moving average but continues to lie below its 50-day moving average. This indicates that bears still largely maintain their hold on the market but a turn in the tide may be coming if there is significant buy pressure in the market. Bitcoin is trading at $30,475 at the time of this writing. It is maintaining its recovery trend in the early hours of Thursday. However, with the opening of the U.S. trading hours, more sell-offs are expected, leading to a decline in price. Featured image from PYMNTS, charts from Arcane Research and TradingView.com Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…

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