Ethereum

Bitcoin

James

<p>Recently, a <a href="https://twitter.com/jimmyvs24/status/1704487337063751689?s=20" target="_blank" rel="noopener noreferrer nofollow">tweet</a> by James V. Straten (@jimmyvs24) drew attention to a curious phenomenon that savvy traders and investors should not ignore: the divergence in funding rates for Bitcoin (#BTC) and Ethereum (#ETH).</p> 
<figure class="wp-block-image size-large"> 
 <img decoding="async" loading="lazy" width="1024" height="577" src="https://captainaltcoin.com/wp-content/uploads/2023/09/image-381-1024x577.png" alt="" class="wp-image-339346" srcset="https://captainaltcoin.com/wp-content/uploads/2023/09/image-381-1024x577.png 1024w, https://captainaltcoin.com/wp-content/uploads/2023/09/image-381-300x169.png 300w, https://captainaltcoin.com/wp-content/uploads/2023/09/image-381-767x432.png 767w, https://captainaltcoin.com/wp-content/uploads/2023/09/image-381-1536x865.png 1536w, https://captainaltcoin.com/wp-content/uploads/2023/09/image-381-2048x1154.png 2048w, https://captainaltcoin.com/wp-content/uploads/2023/09/image-381-266x150.png 266w, https://captainaltcoin.com/wp-content/uploads/2023/09/image-381-100x56.png 100w, https://captainaltcoin.com/wp-content/uploads/2023/09/image-381-621x350.png 621w, https://captainaltcoin.com/wp-content/uploads/2023/09/image-381-788x443.png 788w, https://captainaltcoin.com/wp-content/uploads/2023/09/image-381.png 900w" sizes="(max-width: 1024px) 100vw, 1024px"> 
</figure> 
<h2 class="wp-block-heading" id="the-data-at-hand">The Data at Hand</h2> 
<p>According to Straten’s metrics, there appears to be a widening gap in the way traders are positioning themselves in the Bitcoin and Ethereum markets. Specifically, Bitcoin is seeing an increase in short positions, implying that traders are betting on a price decline. Conversely, long positions are rising for Ethereum, indicating optimism for the asset’s future performance.</p> 
<h2 class="wp-block-heading" id="the-funding-rate-spread">The Funding Rate Spread</h2> 
<p>The divergence is most visible when examining the annualized funding rate spread, a metric used to understand the cost of holding long or short positions in derivative markets. Currently, the spread stands at -1.75%, marking the second lowest point this month. The negative spread suggests that it’s more expensive to hold short positions in Bitcoin than it is to hold long positions in Ethereum.</p> 
<h2 class="wp-block-heading" id="the-eth-btc-ratio">The ETH/BTC Ratio</h2> 
<p>Straten’s tweet also hinted at an effort by market participants to prop up the ETH/BTC ratio. The ratio measures the value of one asset in terms of another and is often used to gauge the relative strength of the two cryptocurrencies. By driving up long positions in Ethereum while shorting Bitcoin, traders could potentially be looking to bolster the value of ETH relative to BTC.</p> 
<h2 class="wp-block-heading" id="why-does-this-matter">Why Does This Matter?</h2> 
<p>The observed divergence can have a ripple effect on the broader cryptocurrency market. A bearish sentiment on Bitcoin may induce a downturn that influences other altcoins. On the other hand, the bullish sentiment towards Ethereum could spill over into related assets like ERC-20 tokens.</p> 
<h2 class="wp-block-heading" id="conclusion">Conclusion</h2> 
<p>It’s essential for traders and investors to keep an eye on these shifts in funding rates as they offer insights into market sentiment. While it is too early to predict definitive outcomes, the current divergence, as pointed out by James V. Straten, signals contrasting investor outlooks for Bitcoin and Ethereum, setting the stage for intriguing market dynamics in the days ahead.</p> 
<div class="bigofferblock margincenter mb30 pt20 pl20 pr20 " style=""> 
 <div class="col_wrap_two mb0"> 
  <div class="offerbox_big_wrap flowhidden"> 
   <div class="image position-relative text-center col_item mobileblockdisplay img-maxh-350 img-width-auto"> <a class="re_track_btn" href="https://captainaltcoin.com/go/etoro/" target="_blank" rel="noopener noreferrer nofollow"> <img decoding="async" class="lazyload" data-skip-lazy="" data-src="https://captainaltcoin.com/wp-content/uploads/thumbs_dir/etoro-ca-1-oyc386si1bdrmhrff7xex5ngu4zikfy3ei6bk0rbb6.png" width="500" alt="We recommend eToro" src="https://captainaltcoin.com/wp-content/themes/rehub-theme/images/default/blank.gif"> </a> 
   </div> 
   <div class="product-summary col_item mobileblockdisplay"> 
    <h3 class="product_title entry-title font150 lineheight25 mb30" id="a-class-re_track_btn-href-https-captainaltcoin-com-go-etoro-target-_blank-rel-noopener-noreferrer-nofollow-span-we-recommend-etoro-span-a"> <a class="re_track_btn" href="https://captainaltcoin.com/go/etoro/" target="_blank" rel="noopener noreferrer nofollow"> <span>We recommend eToro</span> </a> </h3> 
    <div class="rev_disclaimer font70 greencolor lineheight15 mb20"> <strong>74% of retail CFD accounts lose money.</strong> 
    </div> 
    <div class="buttons_col mb25 rh_big_btn_inline"> 
     <div class="priced_block clearfix"> 
      <div> <a class="re_track_btn btn_offer_block" href="https://captainaltcoin.com/go/etoro/" target="_blank" rel="noopener noreferrer nofollow"> Visit eToro Now </a> 
      </div> 
     </div> 
    </div> 
    <div class="bigofferdesc"> <i class="vertmiddle mr10 rhicon rhi-check-circle-solid greencolor font130"> </i>Active user community and social features like news feeds, chats for specific coins available for trading. 
     <br><i class="vertmiddle mr10 rhicon rhi-check-circle-solid greencolor font130"> </i>Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs. 
     <br><i class="vertmiddle mr10 rhicon rhi-check-circle-solid greencolor font130"> </i>Copy trading: allows users to copy the trades of leading traders, for free. 
     <br><i class="vertmiddle mr10 rhicon rhi-check-circle-solid greencolor font130"> </i>User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate. 
     <br><i class="vertmiddle mr10 rhicon rhi-check-circle-solid greencolor font130"> </i>eToro offers staking for certain popular cryptocurrencies like ETH, ADA, XTZ etc. 
    </div> 
   </div> 
  </div> 
 </div> 
</div> 
<p>The post <a rel="noopener noreferrer nofollow" href="https://captainaltcoin.com/funding-rate-bitcoin-shorts-ethereum-longs-are-traders-betting-against-btc-and-for-eth/">Funding Rate: Bitcoin Shorts &amp; Ethereum Longs—Are Traders Betting Against BTC and For ETH?</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://captainaltcoin.com">CaptainAltcoin</a>.</p>

Funding Rate: Bitcoin Shorts & Ethereum Longs—Are Traders Betting Against BTC and For ETH?

Table of Contents

CaptainAltcoin

Other articles published on Sep 20, 2023

Philippines SEC Collaborates With International Organizations to Strengthen Crypto Enforcement Ef...

VERTU Unveils Next-Generation WEB3 Phone at TOKEN 2049

Why is PayPal’s stablecoin PYUSD struggling a month after launch?

Blockchain Economy Dubai Summit 2023: Just Two Weeks Away and Buzzing with Anticipation

Binance Leads Bitcoin Spot Volume Decline in September

Polkadot price prediction: Break and retest pattern forms

Join our free newsletter for daily crypto updates!