Researcher Alex Adler Jr noted that the average funding rate on major exchanges has dropped to zero, which may indicate an upcoming bullish trend in Bitcoin.
Bitcoin Futures Funding Rate Hits 0%
According to a chart presented by Alex Adler in his post, the average funding rate across Binance, Bybit, and OKX has declined to zero. This reflects the current market state, where there is no clear dominance between long and short positions among traders, indicating market uncertainty.
Historical Trends: Bullish Signals from Neutral Funding Rate
Alex notes that in the past, bullish momentum in the Bitcoin market often followed after the funding rate reached the neutral point. This suggests that there could be a price increase in the coming days.
Bitcoin’s Current Price and Market Sentiment
At the start of this month, Bitcoin's price was $102,417.80, but since then the market experienced a 5.67% drop. Currently, the market has surged by around 0.9% in the last 24 hours, although it hasn't fully recovered from February's losses. Over the last 14 days, the market has dropped by 4.3%, indicating uncertainty and anticipation of further movements.
The drop in Bitcoin's funding rate to zero may signal market uncertainty, but historical data suggests the possibility of an uptrend. Any change in trend should be watched closely in the coming days.
