Ethereum

Bitcoin

April

Velo

Rise

<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/binance-adds-three-more-cryptos-as-funding-rates-soar/" data-wpel-link="internal">Binance Adds Three More Cryptos as Funding Rates Soar</a><br></p>
<p style="text-align: justify"><strong><a href="https://coin-turk.com/binance-3-tane-daha-ekliyor-kripto-paralarda-son-durum-ne" data-wpel-link="internal">Bitcoin</a></strong>‘s (<a href="https://en.coin-turk.com/bitcoin-bulls-hold-strong-above-34000-despite-inflationary-crisis-whats-next-for-btc/" data-wpel-link="internal">BTC</a>) breakthrough of the $60,000 mark has not only attracted crypto enthusiasts but also sparked debates on the impact on funding rates in perpetual futures contracts. The funding rate, which indicates the cost of holding long or short positions in perpetual futures contracts for <a href="https://en.coin-turk.com/bitcoins-golden-cross-announcement-will-it-reach-new-all-time-highs/" data-wpel-link="internal">Bitcoin</a>, has risen to significant levels on major cryptocurrency exchanges like <a href="https://en.coin-turk.com/temporary-suspension-of-multiple-binance-services-for-system-upgrade/" data-wpel-link="internal">Binance</a> and OKX.</p> 
<h2 style="text-align: justify" id="strong-funding-rates-at-highest-since-april-2021-strong"><strong>Funding Rates at Highest Since April 2021</strong></h2> 
<p style="text-align: justify">According to data from Velo Data, the annual funding rate for Bitcoin perpetual futures contracts on Binance and OKX has exceeded 85%, reaching the highest level since early April 2021.</p> 
<p style="text-align: justify"><img loading="lazy" loading="lazy" decoding="async" class="aligncenter size-full wp-image-321077" src="https://coin-turk.com/wp-content/uploads/2024/02/Bitcoin-Altcoin-Fonlama-Orani.png" alt="" width="2378" height="1242"></p> 
<p style="text-align: justify">Understanding annual funding rates is crucial for investors as they provide insights into market sentiment and decision-making for positions. These rates represent the annual cost or reward of holding positions in perpetual futures contracts, calculated based on the premium or discount between the contract price and the spot price.</p> 
<p style="text-align: justify">High funding rates indicate strong demand for long positions compared to short ones, potentially signaling over-leveraged market conditions. The current funding rates, at their highest since April 2021, point to increased market activity and investor interest.</p> 
<h2 style="text-align: justify" id="strong-altcoins-funding-rates-also-on-the-rise-strong"><strong>Altcoins’ Funding Rates Also on the Rise</strong></h2> 
<p style="text-align: justify">Beyond Bitcoin, funding rates for perpetual futures contracts of altcoins like Ethereum (ETH) have also reached notable levels. Exchanges such as Binance, OKX, and Bybit have seen significant increases in funding rates for Ethereum perpetual futures. This data is particularly important as it provides additional information about the dynamics in the altcoin market and investor sentiment.</p> 
<p style="text-align: justify">Comparing the funding rates for Ethereum’s perpetual futures contracts with those of Bitcoin can reveal potential similarities or differences in market behavior between the largest cryptocurrency and the largest altcoin. Similar patterns may indicate correlated market movements, while different rates could point to unique factors affecting the price trajectory of each asset.</p> 
<p style="text-align: justify">Investors closely monitor funding rates across various cryptocurrency contracts to define their trading strategies and assess market conditions. With the recent rise in Bitcoin’s price, it is fair to say that volatility and interest in derivative trading have increased, leading to exceptionally high funding rates.</p> 
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on COINTURK NEWS: </span> <a href="https://en.coin-turk.com/binance-adds-three-more-cryptos-as-funding-rates-soar/" data-wpel-link="internal">Binance Adds Three More Cryptos as Funding Rates Soar</a></h5>

Binance Adds Three More Cryptos as Funding Rates Soar

Table of Contents

COINTURK NEWS

Other articles published on Feb 29, 2024

Shiba Inu Boosts Privacy: Implements Cutting-Edge Encryption for Enhanced Security

Institutions choose ETH over BTC and SOL, GFOX also being considered

Miners Are Selling BTC While Bitcoin Sets New Records! Is China Behind the Sales Again?

Bitcoin Exchange Binance Announces It Will Support Network Upgrade and Hard Fork of This Altcoin!

Bitcoin sell-off alert: reliable indicator warns of imminent correction

Bitcoin on Track for Record $22,000 Monthly Candle

Join our free newsletter for daily crypto updates!