Bitcoin Futures Funding Rate is Going Negative Even as Price Skyrockets

The funding rate of the Bitcoin (BTC) futures market is turning negative as the price of BTC surges. The market buying from short contract holders then turns into buyer demand, further pushing BTC up.

Source: BTCUSD on TradingView.com Shorts are Continuously Getting Squeezed as Bitcoin Rises—Technically Bullish Trend The most widely utilized metric to gauge whether short or long contract holders dominate the market is the funding rate. BTC is Sucking Up a Big Portion of Cryptocurrency Market Volume Atop the negative funding rate and the ongoing short squeeze, there are several other factors that might further fuel the positive Bitcoin market sentiment.

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