Bitcoin Futures Funding Rates Signal Potential Price Correction

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Bitcoin futures funding rates are signaling a potential price correction for Bitcoin in the future, according to on-chain analytics firm CryptoQuant. This could present prime buying opportunities for traders. The rising Coinbase Premium is also seen as a sign of U.S. institutions actively buying Bitcoin.

Record-long positive Bitcoin futures funding rates signal "strong bullish sentiment" which can often precede price corrections, says on-chain analytics firm CryptoQuant. Bitcoin futures funding rates — periodic payments made between short and long traders — may be signaling a potential price correction for Bitcoin in the future, which could present "prime buying opportunities," according to market analysts.

Futures funding rates are the periodic payments that traders pay each other based on the difference between the price of the perpetual futures contract and the spot price of If the Bitcoin futures prices trade above the spot prices, longs pay shorts the funding rate. Conversely, if the futures price trades below the spot, shorts pay longs the funding rate.CryptoQuant analyst ‘Maartunn’ also observed a rising Coinbase Premium, which he said was "a sign of U.S. institutions actively buying Bitcoin." This premium is the price difference between Coinbase compared to global exchange

 

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