Bitcoin has undergone a strong drop since the highs seen yesterday. The price of the leading cryptocurrency fell from its highs of $13,850 to lows around $12,900.
This drop was seemingly a result of the drop in the U.S. stock market. The Dow Jones and the S&P 500 have dropped the largest they have in months, plunging 3% lower amid some uncertainty about fiscal stimulus and the upcoming election.
Bitcoin’s price action has scared some investors, so much so that futures markets have begun to show short positioning. This may be more bullish than bearish, though, despite how contrary that may seem.
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Bitcoin Primed to Rally as Binance Futures Go Negative
Bitcoin’s strong drop lower has scared many investors that were previously exuberant. According to data from ByBt, which tracks crypto-asset derivatives markets, the BTC funding rate on Binance briefly breached negative territory, printing -0.013%/eight hours.
One crypto-asset analyst thinks that this negative print is a “pretty big deal.” Commenting on the matter, he shared the image seen below and said:
“Binance funding being negative is a pretty big deal. Just sayin. A bunch of plebs are gonna get their lunch money taken away soon.”
The funding rate is the recurring fee that long positions pay short positions on a regular basis to normalize the price of the future to the price of the spot market. This funding rate indicates which side of