Bitcoin’s Wild Ride: Is It Time to Panic or Just Laugh? 😂

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What to know:

  • Bitcoin is playing hard to get near $80,000 while the funding rate decides to take a vacation in the negatives.
  • Negative funding rates are like that friend who always shows up at the party just when you think it’s winding down—potentially marking a bottoming pattern in bitcoin.

Ah, the bitcoin (BTC) perpetual futures funding rate—fluctuating more than my mood on a Monday morning. As bitcoin hovers around the $80,000 mark, traders are left scratching their heads, wondering if they should buy a crystal ball or just consult their local fortune teller. After all, it recently lost its 200-day moving average, which is like losing your keys right before a road trip.

Now, let’s talk about the funding rate, which is set by exchanges for perpetual futures contracts. It’s the financial equivalent of a game of musical chairs: a positive rate means long positions are paying shorts, while a negative rate means shorts are paying longs. It’s all very confusing, much like trying to explain to your grandmother what a “blockchain” is.

In the last two weeks, this funding rate has been oscillating like a pendulum, indicating that traders are as indecisive as I am when choosing a restaurant. In bull markets, you’d expect the rate to stay positive, but recently it hit a negative -0.006%, which is like finding out your favorite ice cream shop has run out of your flavor—equivalent to an annualized rate of -2%, according to Glassnode data. So, grab your popcorn, folks; this show is just getting started!

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2025-03-10 19:28