Bitcoin funding rates have taken a nosedive after massive sell-offs at the beginning of the week. Bitcoin had made a remarkable recovery coming out of a slow weekend but these sell-offs would quickly wipe off all of the gains made, and with it, the funding rates came crashing down. It led to one of the most brutal crashes in funding rates in recent history. This has seen it touch one of its lowest points since February. Factors Behind Decline The bitcoin funding rates had plummeted due to the sell-offs that were recorded on Monday night. Most notably had been the plunge in crypto exchange Bybit which had declined to its three-month low of -0.0378%. It represented one of the largest declines of all cryptocurrency exchanges, of which Binance’s levels had stopped at 0.01378%. This sent funding rates to February 2nd levels, although stopping at a higher low compared to the carnage witnessed on May 12th. Related Reading | Bitcoin Miner Revenues Stay Low As Price Decline Continues These negative funding rates persisted throughout the week before culminating in the June decline. Bybit and Binance have both seen negative rates due to the lagging on the perpetual spot markets. It shows a high correlation to the price of the digital asset which had fallen back below $31,000 on Monday night to land at $29,000. BTC funding rates see sharp decline | Source: Arcane Research Funding rates on the Binance exchange have now been at th...
