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CryptoQuant found that Binance’s funding rate has turned negative Growing bearish market sentiment means lower demand for BNB’s long positions According to Cryptoquant, funding rates of Binance have turned negative again. Here, a negative trend in funding rates on Binance usually leads to considerable market movements. The on-chain analytics platform claimed that, “Binance Funding Rates Trending Negative. Since 2023, this marks the third time the FR has entered negative territory for an extended period.” Source: Cryptoquant According to Nino, a Cryptoquant analyst, the historical data shows the current market condition has resulted in renewed attention. This would likely pave the way for significant market events. Notably, funding rates mostly operate as periodical payments for short and long-term traders. This is mostly based on the market difference between perpetual contracts and spot prices. When there are positive funding rates, long position holders pay short positions. This suggests a bullish market sentiment with investors willing to pay a premium to hold their positions. Conversely, a negative funding rate indicates that short position holders are paying long positions. This usually suggests a market correction or bearish market sentiment. An analysis of market sentiment Additionally, the aforementioned analysis claimed that since 2023, this is the third time Binance’s funding rate has turned negative. This implies that traders are mostly expecting further market downturns. Equally, it also signifies the fears of further dips that are usually associated with September-based Bitcoin Cycles. However, one of the prevalent issues that has come into light over the past few days is Binance’s association with governments. Two days ago, Binance was accused of freezing accounts belonging to Palestinians on Israel’s request. According to Quantum Ready, most Muslims have already taken off their funds from Binance. He claimed, “Imagine how many Muslims use Binance. They probably took their funds off because…

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Filed under: News - @ August 31, 2024 3:02 am