Perpetual funding fee for Bitcoin turned unfavourable for third time in 2023

by Jeremy

Definition

The typical funding fee (in %) set by exchanges for perpetual futures contracts. When the speed is optimistic, lengthy positions periodically pay brief positions. Conversely, when the speed is unfavourable, brief positions periodically pay lengthy positions.

Fast Take

  • The perpetual funding fee has turned unfavourable for the third time this 12 months.
  • Every time the funding fee has gone unfavourable, an increase has been seen in brief liquidations with a rise in BTC worth.
  • In January and February, funding charges had been brief and sharp; the January funding fee lasted barely longer than February.
  • Will this be the third time a attraction for bears?
Futures Perp Funding Rate: (Source: Glassnode)
Futures Perp Funding Charge: (Supply: Glassnode)
Short liquidations: (Source: Glassnode)
Brief liquidations: (Supply: Glassnode)

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