Cryptocurrency Q&A Is a negative funding rate bullish?

Is a negative funding rate bullish?

OpalSolitude OpalSolitude Wed Nov 20 2024 | 7 answers 1117
I've been hearing a lot about the funding rate recently, specifically the negative funding rate. I'm wondering if a negative funding rate is actually a bullish sign for the market. Could it indicate a potential market upturn? Is a negative funding rate bullish?

7 answers

BlockchainLegend BlockchainLegend Fri Nov 22 2024
When funding rates are positive, it means that traders are predominantly taking long positions.

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Daniele Daniele Fri Nov 22 2024
This indicates a bullish sentiment in the market, where traders expect prices to rise.

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Bianca Bianca Fri Nov 22 2024
On the contrary, negative funding rates suggest a different scenario.

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SolitudeSerenade SolitudeSerenade Fri Nov 22 2024
Funding rates can offer insights into market sentiment.

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Tommaso Tommaso Fri Nov 22 2024
They imply that there are more short positions in the market.

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