Bitcoin Bears in Control? Record Low Funding Rates on Binance Signal Market Shift

Name	Symbol	Market	Market Cap ($)	Algorithm
Quant	QNTUSD	Crypto	910,901,753	Not Mineable

Name

Symbol

Market

Market Cap ($)

Algorithm

Quant

QNTUSD

Crypto

910,901,753

Not Mineable

	Price Change	Price Change %	Current Price	Bid Price	Offer
	-0.270	-0.43%	62.73	62.66	62.73

Price Change

Price Change %

Current Price

Bid Price

Offer

-0.270

-0.43%

62.73

62.66

62.73

High Price	Low Price	Open Price	Prev. Close	52 Week Range
63.36	62.00	62.77	63.00	50.05 - 153.83

High Price

Low Price

Open Price

Prev. Close

52 Week Range

63.36

62.00

62.77

63.00

50.05 - 153.83

Exchange	Last Trade	Size	Trade Price	Currency
GDAX	11:19:05	1.60	62.71	USD

Exchange

Last Trade

Size

Trade Price

Currency

GDAX

11:19:05

1.60

62.71

USD

Price x Volume	Volume	Base Symbol	Related Pairs
185,333.99	2,966.01	QNT	QNTEUR	QNTGBP	QNTBTC

Price x Volume

Volume

Base Symbol

Related Pairs

185,333.99

2,966.01

Bitcoin Bears in Control? Record Low Funding Rates on Binance Signal Market Shift

17/08/2024 12:30am

NEWSBTC

According to the latest data from CryptoQuant, bears might be in control of Bitcoin given the asset’s funding rates reaching a negative level across all crypto exchanges, including Binance. For context, funding rates are essential in perpetual futures markets to ensure the price of perpetual contracts aligns closely with the spot market. These rates can be either positive or negative, depending on market conditions. A positive funding rate implies that long position holders pay shorts, typically signaling bullish sentiment. Conversely, negative funding rates suggest shorts pay longs, indicating bearish sentiment. Related Reading: Analyst Warns: Bitcoin Nears Dangerous Territory – $40,000 On The Horizon? Funding Rates Signal Market Shift According to EgyHash, the analyst who reported this significant rise in funding rates on the CryptoQuant QuickTake platform, Bitcoin’s funding rates on Binance have dipped to unprecedented negative levels that have not been seen ever since October 2023. The analyst revealed that this prolonged negativity in funding rates, lasting over three consecutive days, highlights an intensifying “bearish sentiment” among traders. Notably, the significance of these negative rates is compounded by Binance’s substantial share in the open interest (OI) across crypto exchanges. This dominant position suggests that the sentiments reflected in Binance’s funding rates could presage broader market movements. $BTC funding rates have reached the highest level of negativity YTD on Binance “Binance has the largest share of open interest (OI), this could indicate a bearish market sentiment for the short term.” – By @EgyHashX Read more 👇https://t.co/lGCUSic8kl pic.twitter.com/bfCPAYy1Z8 — CryptoQuant.com (@cryptoquant_com) August 16, 2024 When funding rates remain negative, it generally points to an expectation among traders that prices may decline further. This bearish outlook might encourage selling, potentially leading to a self-fulfilling prophecy as downward price movements encourage more shorts. The analyst particularly noted: This means that short positions are now dominating the perpetual market. Taking this into consideration, and as Binance has the largest share of open interest (OI), this could indicate a bearish market sentiment for the short term. However, there is a catch. While this negative change in funding rate may spell a plunge for BTC, extremely negative funding rates can sometimes precede a market reversal if shorts begin to cover their positions, leading to a rapid price surge. Bitcoin Market Performance So far, Bitcoin has been unable to reclaim its psychological level of $60,000 following a plunge below it on August 14. Instead, the asset has continued to range between $59,000 to $56,000 region over the past few days. Related Reading: Bitcoin Observes Pullback To $58,000: Is This The Cause? Notably, the past 24 hours are no different from the continuous consolidation. Over this period, Bitcoin has declined by 2.6%, with a current trading price of $58,015. Featured image created with DALL-E, Chart from TradingView

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