BTC 'Funding Rates' Return To Normal, What Are The Expectations For BTC Price?

<p>&nbsp;"The dizziness! Some say it goes up and some goes down, which one is this?"</p><p><br /></p><p>Cryptocurrency king Bitcoin (BTC) funding rates by market capitalization have started to return to normal levels after earlier price increases prompted many traders to pay higher fees than usual.</p><p><br /></p><p>This is because traders want to maintain long positions in the last seven days, therefore they pay from 0.19% to 0.93% in BTC fees while the funding rates for Ethereum (ETH), Solana (SOL) and Ripple (XRP) also become normal.</p><p><br /></p><p>In context, the financing rate is a periodic payment between short and long traders aimed at maintaining the asset futures contract price near its spot price.</p><p><br /></p><p><br /></p><p>While the futures contract is an agreement to buy or sell an asset at a price agreed in advance with a contract that does not have an expiration date.</p><p><br /></p><p>So here it can be seen that the funding rate reflects the overall sentiment of traders and their projections for future crypto market trends.</p><p><br /></p><p>Therefore, a negative funding rate signals traders to expect the crypto market to witness a decline, as does a positive funding rate that indicates traders are going long.</p><p><br /></p><p>Please note that most traders are predicting BTC to stay lower for the foreseeable future, but some analysts believe that BTC will continue its upward trend despite the recent pullback.</p><p><br /></p><p>At the time of writing, the price of BTC jumped by 1.14% to $43,539 in the last 24 hours with a market cap of $852 billion and recorded a 1.95% rise over the last week.</p>