25 Oct 2021
Massive funding rate spike as bitcoin pushed above the ATHFunding rates spiked during the all-time breakout but are now on par with the mid October levels.
Source: NYDIG Data
Similar to what we saw in the futures market, the funding rates in the perpetuals spiked as bitcoin pushed beyond the April ATH. The short-term traders seemingly expected a substantial breakout following the new highs. As bitcoin stalled and fell back below ATH, funding rates again normalized on par with the mid-October levels. Open interest denominated in BTC within the perpetuals increased by 15,000 BTC following the ATH breakout. This rise, combined with the increased funding rate during the spike, could indicate that there are some leveraged long-trades in the ATH range that could be worth keeping in mind if bitcoin makes a push downwards.