Bitcoin funding rates on Binance, the largest global cryptocurrency exchange, have dropped to the lowest levels of the year, indicating a significant change in market sentiment. According to analyst EgyHash, Bitcoin funding rates on the exchange have remained negative for three consecutive days, showing that short positions have overtaken long positions.
What’s Happening on the Bitcoin Front?
Funding rates on Binance have long been used to measure market sentiment, indicating shifts based on short and long positions. When funding rates turn negative, investors with short positions pay those with long positions, indicating a rising demand for short positions.
Details on the Subject
A 10x Research report dated August 16 noted the lack of institutional interest in Bitcoin at current levels. This was evaluated through a seven-day issuance rate of stablecoins, considered a clear indicator of Bitcoin buyer activity. Markus Thielen, founder of 10x Research, explained that stablecoin inflows are a key sign when fiat dollars are converted into crypto and moved into Bitcoin or Ethereum. On August 15, spot Bitcoin exchange-traded funds saw a positive inflow of $11.11 million despite declining interest in the Grayscale Bitcoin Trust (GBTC).
Conclusions
According to Sosovalue data, the total net asset value of spot Bitcoin ETF funds reached $51.99 billion after total net inflows reached $17.33 billion. Despite the negative funding rates, these ETF figures indicate increasing demand from both institutional and individual investors considering Bitcoin as a valid investment crypto asset.
The negative funding rates in Bitcoin on Binance demonstrate a shift in market sentiment towards short positions. Simultaneously, the inflows into Bitcoin spot ETFs indicate growing interest from institutional and individual investors.
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