Due to the congestion in the Bitcoin network over the weekend, BTC withdrawals and transfers could not be performed and Binance had to suspend BTC withdrawals.
While this disruption caused Bitcoin to come under some selling pressure, BTC fell to $ 27,200.
While waiting for the inflation data from the USA today, BTC continues to be traded at $ 27,600.
Looking at the funding rates on the BitMEX exchange after the decline in Bitcoin, Santiment stated that the funding rates have reached the most negative rate in two months.
In other words, stating that traders expecting a decrease in Bitcoin have risen to the highest level since March, Santiment said that this situation usually results in a price increase.
“Bitcoin's funding rate on BitMEX is seeing its most negative rate since mid-March, just before prices rose.
In mid-March, too, traders thought that BTC would drop and the funding rate on BitMEX was at negative levels but saw a price spike after Bitcoin.
In general, when the crowd overwhelmingly assumes that prices will go down, i.e. when BTC shorts increase, so do the chances of a price increase.”
😮 #Bitcoin's funding rate on @BitMEX is seeing its most negative ratio since the heavy bets against prices in mid-March, just before prices soared. Generally, price rise probabilities increase when the crowd overwhelmingly assumes prices will be dropping. https://t.co/HbTcSouRsU pic.twitter.com/bu1dNDFTcU
— Santiment (@santimentfeed) May 10, 2023
Like Santiment, CryptoQuant analyst also stated that the funding rate in BitMEX has turned negative again, shared a chart showing that this situation usually brings a price increase, and added:
“BitMEX funding rates are negative (-) again. Recently, the correlation between BitMEX funding rates and BTC price is high.”
*Not investment advice.