Bitcoin Futures Funding Rate Hits 0%, Signaling Market Uncertainty But Potential Bull Run May Be Coming

An on-chain and macro research specialist, Alex Adler Jr, in his recent X post, notes that the average funding rate across Binance, Bybit and OKX – the three top exchanges – has slipped to zero.

The average funding rate across Binance, Bybit and OKX – the three top exchanges – has slipped to zero, a development that could herald the onset of a bull run in the Bitcoin market.

According to a chart, titled ‘BTC: Futures Perpetual Funding Rate (7D-SMA)’, shown in Alex’s post, the average funding rate across the three top exchanges of Binance, Bybit and OKX has declined to zero.

The chart conveys how the funding rate for Bitcoin futures contracts has changed over time, using a 7-day simple moving average.

In our chart, the funding rate remains at zero. This implies that there is no clear dominance between long and short traders. In short, this reflects market uncertainty.

Alex points out that in the current cycle, the Bitcoin market has often shown bullish momentum immediately after the funding rate touched the neutral point.

Yesterday, the average funding rate across the three top exchanges dropped to zero. In this cycle, every such occurrence has ultimately led to a macro bull rally. It's unclear how long we will stay at these levels, but one thing is certain-during the consolidation phase, the… pic.twitter.com/63CYfus79W

This means that there is a high chance for the BTC market to go up in coming days.

At the beginning of this month, the price of Bitcoin stood at $102,417.80. Between February 1 and 5, the market sharply slipped nearly 5.67%.

Between February 6 and 9, the market remained within a tight range of $96,615 and $96,440. With a strong bullish push, on February 10, BTC broke above this range.

In the last 24 hours, the market has surged by around 0.9%. However, the market has not yet recovered from the early February correction. In the last 14 days, the market has dropped by 4.3%.

In conclusion, Bitcoin’s funding rate has dropped to zero, signalling market indecision. If history repeats itself, Bitcoin could soon see an uptrend.