Bitcoin Funding Rates Rise but Stay Below Bullish Threshold: Glassnode

TLDR

• Bitcoin funding rates have increased across major exchanges indicating fresh bullish positions by traders.
• The average funding rate recently climbed to 0.005% before dropping to 0.003% in the last 24 hours.
• Glassnode stated that current funding rate conditions remain supportive but not yet decisive for a strong rally.
• Bitcoin’s price briefly rose to $94,700 before falling back to $92,100 within 24 hours.
• Over 500 million dollars in crypto positions were liquidated in one day, including 146 million dollars from Bitcoin trades.

Bitcoin funding rates have moved higher across major exchanges, suggesting increased bullish positioning, though momentum has not crossed key levels, according to Glassnode. The average funding rate climbed recently but still trades below the levels typically seen during strong upward rallies, while traders have also shown short-term caution.

Bitcoin Perps Funding Rates Have Surged

Glassnode confirmed that Bitcoin funding rates on perpetual futures markets have risen across several exchanges. The firm published this update in a recent post on X. The 7-day moving average of the metric remains below historic bullish thresholds.

The funding rate reflects periodic fees exchanged between long and short traders on derivatives platforms. A positive rate signals traders are paying to maintain long positions. This often indicates bullish market sentiment.

The funding rates reached 0.005% after recovering from near-zero levels in November during Bitcoin’s price correction. Glassnode noted that this change followed renewed long interest during Bitcoin’s consolidation. However, it has now slipped slightly to 0.003%.

“Current conditions remain supportive but not yet decisive,” Glassnode stated in the post. This suggests sentiment is cautiously optimistic, but traders are not overly aggressive. Historically, the average funding rate must exceed 0.01% to indicate stronger momentum.

This week’s rate drop could imply that some investors have taken profits or that others are expecting downward movement. Market reactions to recent rallies may have encouraged short-term traders to adjust positions. Long interest may not yet be strong enough to push further upside.

Bitcoin Price Volatility Continues With Liquidations

Bitcoin price reached $94,700 during its latest upward move, continuing its recent bullish trend. However, the price fell again to around $92,100 in the last 24 hours. This quick shift created volatility across crypto derivatives markets.

CoinGlass data shows more than $500 million in liquidations across digital assets within the past day. Out of this amount, $146 million were from Bitcoin-related positions. This indicates traders faced sudden losses during market swings.

These liquidations occurred as positions on both sides of the trade were hit. Rapid price moves likely triggered stop losses and margin calls. Derivatives traders faced swift shifts as Bitcoin pulled back.

Such conditions reflect unstable short-term sentiment. Longs and shorts both remain exposed to market turns. Funding rates are climbing but have yet to reflect broad trader confidence.

Ethereum and Other Coins Mirror Market Swings

Other cryptocurrencies also showed erratic price movements over the same 24-hour window. Some assets saw quick gains before reversing. This pattern aligned with Bitcoin’s pullback after its recent local high.

Ethereum joined Bitcoin in the volatility, though specific liquidation numbers for ETH were not disclosed. Traders in both coins adjusted positions. This created further pressure across multiple crypto markets.

While Bitcoin funding rates improved, the broader market remains mixed. Bullish interest is evident, but it has not surged. Short-term caution continues to influence trading activity.

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