Bitcoin Funding Rates Touch Same Level As Early September, More Correction To Come?

Data shows Bitcoin funding rates right now are at the same level as they were in early September. This means the coin may see another flush out similar to how it happened back then. Bitcoin Funding Rates Float Around Similar Levels To Early September As per this week’s on-chain report from Glassnode, the BTC futures perpetual funding rate of all exchanges is currently at the level similar to what it was back in early September before the crash. The “funding rates” is an indicator that shows the premium that traders have to pay each other while holding on to their positions in the perpetual swap futures markets. When the metric has negative values, it means that short traders are paying longs, and that many traders are bearish on Bitcoin right now. Opposite to that, positive funding rates imply that the overall market sentiment is leaning towards bullish and longs are currently paying shorts to keep their positions. Related Reading | BTC Holders Reduce Spending, Why Bitcoin Could Get More Rocket Fuel Now, here is a chart that highlights the trend in the value of the indicator over the last six months: Looks like the metric is currently showing highly positive values | Source: Glassnode's The Week On-Chain, Week 43 As the above graph shows, when Bitcoin made its new all-time high (ATH) some days ago, the indicator reached positive local highs. This means traders started opening many leveraged long pos...