26 Feb 2024

Funding rates skyrocket to 864-day high

Bitcoin has gone from $51k to $57k fueled by a ferocious short squeeze. The aftermath of the short squeeze clouds the current market signals from the derivatives market. In this week's report, we tell you which metrics to watch closely in the coming days.
AOC Cover Feb 27 SVG
Massive short squeeze sends bitcoin above $56,000
A huge short squeeze has pushed funding rates on Binance to an 864-day high in its latest funding rate interval. BTC went from $51,000 to $54,000 yesterday afternoon and evening (UTC) before massive short liquidations rapidly drove BTC towards $57,000 at night. During a 30-minute spell, the BTCUSDT perp premium increased substantially, topping at $290 as shorts were forced to cover. After, premiums declined back towards the prior $40-50. This massive 30-minute dislocation is the source behind the current extreme funding rate witnessed on Binance. 
Wait for the dust to settle before reading the perp market
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