Funding rates remain very low, reflecting investors' uncertainty and hesitation to open long positions.
The ongoing Trump-related turmoil adds even more risk to an already volatile derivatives market, making traders even more cautious.
Typically, when Bitcoin breaks above its previous all-time high, we tend to see a surge in funding rates, signaling that euphoria and risk appetite are back.
But that’s not what we’re seeing right now, investors need more clarity before jumping in with conviction.
Interestingly, this cautious stance is actually a healthy sign :
- It means short positions are still substantial wich could help the future uptrend thank's to liquidations
- The derivatives market is not overheating.
We’re seeing a well-balanced market, and that’s exactly what we like to see, it provides a stronger foundation for sustainable price action going forward.
It’s worth noting that funding rates are currently twice as high on Binance and Bybit compared to OKX and Deribit.
This means that opening a long position on OKX or Deribit is significantly cheaper at the moment, making them potentially more attractive platforms for traders looking to reduce their funding costs.
Written by Darkfost
