Bitcoin & Ethereum Funding Rates Signal Continued Bullishness Despite Recent Selloff

cryptonews.com:

Funding rates in the market for bitcoin (BTC) and ethereum (ETH) perpetual futures contracts reveal that most crypto derivatives traders continue to lean bullish, despite falling spot prices over the past 24 hours.

Judging from data by Coinglass, funding rates on the BTC/USDT perpetual contract on the major crypto exchange Binance have largely remained positive throughout July, despite stagnating and falling prices seen since July 19.

Binance BTC/USDT funding rates in July:

The same has mostly also been the case for the ETH/USDT perpetual contract. The funding rate has remained positive even as ETH fell sharply on Monday this week, dropping from USD 1,600 to well below the key USD 1,500 level.

Binance ETH/USDT funding rates in July:

A positive funding rate means that traders who are long need to pay a funding fee to those who are short, while a negative funding rate results in the opposite situation. Funding rates on perpetual futures are generally positive during bullish market conditions and negative during bearish conditions.

Binance usually ranks as the largest exchange by open interest in bitcoin perpetual futures. The exchange updates its perpetual funding rates every 8 hours.

Meanwhile, liquidations of leveraged bitcoin long positions reached USD 30.6m in the 12 hours from noon to midnight UTC on Monday. The event marked the highest level of liquidations since July 20, when over USD 55m of bitcoin longs were liquidated as bitcoin crashed from the USD 24,000 level.

BTC liquidations:

Similarly, ETH also saw a relatively high level of liquidations on Monday, with USD 46m in ETH longs liquidated in the 12 hours from noon to midnight. As with bitcoin, the liquidations on Monday marked the highest level of ETH liquidations since