Funding Rates For Perpetual Swaps Funding rates for perpetual swaps are periodic payments exchanged between traders holding long and short positions. These rates help keep the perpetual swap price aligned with the underlying spot market price ¹.
*How Funding Rates Work:*
- When the perpetual swap price exceeds the spot price, long positions pay short positions, incentivizing traders to short the contract and push the price down. - Conversely, when the perpetual swap price is below the spot price, short positions pay long positions, encouraging traders to go long and push the price up ².
*Key Considerations:*
- *Funding Rate Calculation:* Funding Rate = (Perpetual Swap Price - Spot Price) * Funding Rate Multiplier - *Funding Rate Multiplier:* Typically ranges from 0.01% to 0.03% per 8-hour period, varying between exchanges - *Payment Frequency:* Usually every 8 hours, but can differ between exchanges
*Exchange-Specific Funding Rates:*
- *Binance:* 0.01% funding rate multiplier, every 8 hours - *Bybit:* 0.01% funding rate multiplier, every 8 hours - *OKX:* 0.01% - 0.03% funding rate multiplier, every 8 hours
*Impact on Trading Strategies:*
- High positive funding rates may indicate overbought conditions, while high negative funding rates suggest oversold conditions - Traders can use funding rates to gauge market sentiment and adjust their strategies accordingly - Funding rates can influence futures premiums, with increased premiums observed on exchanges like Binance, Bybit, and OKX #CryptoIntegration #MarketTurbulence #HotJulyPPI #TrumpTariffs #AmericaAIActionPlan $SOL $ETH $XRP
Market Updates - *Bitcoin*: Trading at $117,661, down 0.90% with a global cryptocurrency market cap of $4.03 trillion. - *Ethereum*: Trading at $4,390.07, reflecting a 5.09% decline in the last 24 hours. - *BNB*: Decreased to 828.79 USDT, reflecting a 2.05% decline over the past 24 hours. $BTC $ETH $BNB #MarketTurbulence #CPIWatch #ETHTreasuryStrategy #BinanceHODLerLA
Altcoins are alternative cryptocurrencies to Bitcoin. Here are some of the latest altcoin news and updates:
Recent Price Updates - *Altlayer (ALT)*: Currently trading at $0.04 with a 0.64% decrease. - *Ethereum (ETH)*: Trading at $4,622.36 with a 2.12% decrease. - *Solana (SOL)*: Fell 5.21% to $193.17. - *XRP*: Fell 3.65% to $3.10 ¹ ².
Market Trends - The altcoin season index has a reading of 40%, indicating that the altcoin season is not yet fully underway. A reading of 75% or higher typically marks the start of an altcoin season. - Coinbase Institutional suggests that a full altcoin season could start as early as September, citing improving liquidity and institutional interest. - Some analysts believe that the current market conditions may represent the last chance for traders and investors to allocate capital into altcoins before the market potentially reaches new all-time highs ² ³.
Notable Altcoin Developments - *Zora (ZORA)*: Hit an all-time high as user activity surges on the platform. - *Ethena (ENA)*: Analysts are calling it the biggest altcoin bet this cycle. - *SUI Crypto*: Broke away from the pack with a 44% monthly surge and record total value locked (TVL). - *Chainlink*: New $1M token reserve ignites 14% rally and breakout momentum. $ZORA $ENA $SUI #SwingTradingStrategy #AirdropSafetyGuide #TrumpMediaBitcoinTreasury #BombieBinanceTGE