Bitcoin has undergone a drop since the local highs of $19,000. The coin currently trades for $15,500, though traded as low as $17,500 earlier today. The bounce has surprised many analysts, who thought that Bitcoin would sustain a deeper correction into the $15,000-16,000 range.
Yet this bounce has come at a cost: the funding rates of the BTC and crypto markets are rocketing higher. The funding rate is the fee that long positions pay short positions on a regular basis to ensure that the price of the futures is close to the price of the spot market.
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The Bitcoin futures funding rates across top exchanges have begun to shoot higher, ByBt reports. ByBt is a derivatives tracker that follows funding rates, open interest, and other leading metrics for cryptocurrency futures markets.
The funding rate of Binance’s Bitcoin futures market has hit 0.08%