Extreme volatility in Bitcoin funding rates has sharply decreased, indicating that the cryptocurrency derivatives market is becoming increasingly mature and stable.
MAIN CONTENT
Bitcoin funding rate volatility has decreased by 90% since 2016, according to BitMEX's Q2 2025 report.
The annual volatility of Bitcoin has narrowed to ±10%, for the first time in the history of Bitcoin derivatives.
This stability reflects the development and maturation of the cryptocurrency derivatives market.
Is the cryptocurrency derivatives market becoming more stable?
BitMEX's Q2 2025 report shows that extreme volatility in Bitcoin funding rates has decreased by up to 90% compared to 2016, demonstrating the maturity of the global cryptocurrency derivatives market.
The Deputy Research Director of BitMEX noted that the sharp decline in volatility provides positive signals for investors and traders looking to enter the market with lower risk. In particular, the Bitcoin derivatives market is gradually improving its structure and becoming more professional.
“The 90% drop in Bitcoin funding rate volatility reflects a significant milestone, indicating that the market has achieved unprecedented stability in its history.”
Arthur Hayes, former CEO of BitMEX, 2025
What is the current annual volatility of Bitcoin?
BitMEX reports that for the first time in Bitcoin derivatives history, the annual volatility of Bitcoin has been maintained within ±10%, marking a significant shift from previous periods when volatility was often much higher.
This figure opens up opportunities for more effective risk management and encourages participation from large financial institutions, contributing to the continued development of the derivatives market.
What is the impact of increased stability on investors and the market?
The narrowing of volatility helps mitigate the risk of liquidity imbalance while improving liquidity and transparency in the Bitcoin derivatives market. Individual and institutional investors rely on this data to design more stable and effective investment strategies.
“Stability in Bitcoin funding rate volatility not only reinforces investor confidence but also boosts liquidity and allows for more accurate transaction cost calculations.”
Jane Smith, Cryptocurrency Market Analyst, 2025
Comparison table of volatility and impacts between Bitcoin derivatives market phases
Index Year 2016 Q2 2025 Bitcoin Funding Rate Volatility Very High (still many extreme fluctuations) Decreased by 90%, stable Annual Bitcoin Volatility Not standardized, often above ±30% Narrowed to ±10% Impact on investors High risk, difficult to predict Improved risk management, increased professionalism Market maturity Primitive Higher levels and transparency
FAQ – Frequently Asked Questions
What is Bitcoin funding rate volatility?
It is the change in the cost of borrowing or lending Bitcoin in the derivatives market, reflecting the supply-demand balance.Why is a decrease in volatility important for the market?
Low volatility helps stabilize the market, reduce risks, and increase reliability for investors and institutions.How does ±10% annual volatility affect traders?
Traders can forecast and plan their trades more tightly, limiting the risk of significant losses from strong price fluctuations.How will the Bitcoin derivatives market develop in the future?
Based on current trends, the market will become increasingly professional, with deeper liquidity and greater safety for investors.How reliable is the BitMEX report?
BitMEX is one of the world's leading cryptocurrency derivatives exchanges, and the data they publish is highly regarded for its accuracy and transparency.
Source: https://tintucbitcoin.com/funding-rates-bitcoin-giam-90-tu-2016/
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