Bitcoin funding rate flipped positive boosting crypto liquidation above $240 million in 24 hours
Bitcoin price consolidates near $25K on Wednesday. As per Crypto quant, short positions in BTC rose dramatically since March 11. The Funding rate for Bitcoin turns bullish, which has seen BTC shorts liquidation to $240 million. The total short and long liquidations stood at $258 million.
Bitcoin price zoomed following the release of the US CPI February data on Tuesday. The CPI came in line with market expectations, at 6% from the previous month’s reading of 6.4%.
Bitcoin exhibits a direct correlation with global financial markets since 2009, with no divergence in the weekly time frame in recent times.
At the time of writing, BTC was trading at $24,929, up 0.72% for the day. In the previous session, the Bitcoin price rose to a nine-month high above $26K before retreating to current levels. The move came after data showed that investors were going long and open interest increased.
According to Cryptoqaunt, the Bitcoin funding rate was positive while the BTC price traded in a range-bound manner from January 20 to mid-February, following a bullish move in the first three-week of January.
What are Funding Rate
Funding rates are deployed to keep Bitcoin spot and Bitcoin futures spread in Sync, a periodic amount paid between short and long traders holding positions in open-ended futures contracts.
As currently, the Funding rate is positive which means long positions are paid with short positions, indicating bullish sentiment.
