Funding Rates Fall To Yearly Lows Following Bitcoin’s Fall Below $29,000

Bitcoin has had a rough couple of weeks leading up to this moment and the effects of this are still being felt all across the board. This has seen bitcoin’s price crumble below $30,000 once more. Along with this fall has come some other brutal news for the digital asset. One of these has been the funding rates, whose massive dive has shown increasingly bearish momentum among the largest traders. Funding Rates Take A Dive The Bitcoin funding rates had been in a bit of a lull even as the price of BTC had begun taking its beat-down at the $40,000 level. Mostly, it had remained neutral or below neutral so the sudden drop in funding rates is no surprise. However, the degree to which it had dropped had been more cause for concern. This time around, funding rates have taken a nosedive that has sent them towards yearly lows. Related Reading | How The Tether Peg Could Predict Raging Bitcoin Volatility Arcane Research reports that the plunge had come in the midst of the sell-offs that had rocked the market last week. This had seen funding rates drop across major exchanges in the space. Most notably on May 12th when the funding rate had fallen to a -0.0042% on the biggest exchange, Binance. Funding rates decline to yearly lows | Source: Arcane Research An interesting note is that funding rates, despite trending in the negative territory, have not been this low since July of 2021. This means that this is the most significant dip...