Bitcoin Perpetual Funding Rates Plunge from 0.026% to 0.009%, Reflecting Sentiment Shift

Bitcoin ($BTC) has reportedly experienced a significant dip in perpetual funding rates. As per data from Glassnode, perpetual funding rates of Bitcoin have dipped to 0.009%

Bitcoin (CRYPTO: BTC) perpetual funding rates have dipped to 0.009% in weekly average, raising concerns based on the shifting market sentiment, Glassnode data showed.

What Happened: The on-chain analytics company discussed the declining perpetual funding rates on social media.

“Bitcoin perpetual funding rates have decreased substantially from the peak of ~0.026% in December, dropping below even the 0.01% threshold to reach 0.009% in weekly average,” Glassnode said.

The on-chain data showed that a few crypto exchanges witnessed minor spikes in their funding rates. However, the wider trend highlighted a diminished demand for opening leveraged long positions.

The development comes amid speculation that traders are reluctant to pay premiums for strong bets, likely due to the uncertainty around Bitcoin's near-term price movement.

The data showed that prominent crypto exchanges, including OKX, Bybit, and Binance, highlighted this reluctance among traders in placing bullish bets on Bitcoin.

The on-chain data showed that December witnessed a surge in funding rates parallel to Bitcoin's price surge. However, the following weeks showed a decline, aligning with the price stability near $80,000.

Bitcoin Price Action: BTC traded 0.04% lower at $79,100.3 over 24 hours at press time.