Bitcoin Funding Rates Jump To 100%
Bitcoin’s continuous growth has led to a significant increase in the cost of holding bullish bets in perpetual futures, creating an attractive arbitrage opportunity for non-directional traders.
The annualized funding rate in bitcoin perpetual futures listed on Binance surpassed 100% for the first time in at least a year, according to data sources Velo Data and CoinGlass.
Funding rates on Bybit and Deribit rose to 95% and 56%, respectively. A positive funding rate indicates that perpetuals are trading at a premium to the spot price and requires traders holding long or buy positions to pay a fee to those holding short positions. Exchanges collect funding every eight hours.
(With inputs from Shikha Singh)
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