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The bitcoin funding rate turns negative after a $ 48k re-test – is it a bear trap? By Cointelegraph


The bitcoin funding rate turns negative after a $ 48k re-test – is it a bear trap?

As (BTC) losing $ 52,000 support on April 22, the funding ratio of the futures contracts went into negative terrain. This uncommon situation causes investors to bet on discounts, paying fees every 8 hours.

Although the exchange rate itself causes a slight loss, this situation creates an incentive for arbitrage tables and market makers to buy perpetual contracts (reverse swaps) while selling monthly contracts. Future. The cheaper the long-term leverage gives the bulls the incentive to open a higher position, creating a perfect “bear trap”.

8 hour sponsorship rate for perpetual futures contract signed by BTC. Source: By
Annual premium of Bitcoin futures OKEx 1 month (base). Source: Skew
Bitcoin options contracts for June 25. Source: Deribit