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ZEC $1,212 Bitcoin Funding Rate Hits Nine-Month Low on Binance
Binance's Bitcoin funding rate fell to about -0.00215, the weakest reading since January, as BTC traded near $83,000.
Key takeaways
- The rate is negative. Binance's Bitcoin funding rate fell to approximately -0.00215, below the 30-day moving average of approximately 0.00458.
- BTC sits near $83,000. Bitcoin was retreating toward $83,000 as futures traders leaned increasingly bearish, the report said.
What happened
Binance's Bitcoin funding rate fell to roughly -0.00215, the weakest reading since January, Coinpedia reported. The move came as BTC retreated toward $83,000 and futures traders leaned increasingly bearish.
Negative funding means short-position holders pay fees to long-position holders. Per analyst Arab Chain, the reading marks a clear shift from the positive funding levels held in recent months into negative territory.
Why it matters
The reading sits below the 30-day moving average of approximately 0.00458. A negative funding rate shows that demand for short exposure has grown relative to long positions, according to the report.
Negative funding may leave shorts vulnerable if spot demand for BTC rises, because closing those positions could add to an upward move.
A negative reading is also not a price forecast. It shows how futures positions are skewed, not where the price must go next.
Traders will watch whether funding stays negative or recovers toward neutral, the report said.
What the data shows
The Binance reading of approximately -0.00215 compares with a 30-day moving average of approximately 0.00458.
BTC was trading near $83,000 in the report.
Funding weakness was not limited to Bitcoin. Cardano's funding rate dropped to -0.0183%, and its open interest fell 10% to $526 million.
Background
Cardano's funding rate reached its lowest level in 16 weeks as ADA traded at $0.239. The Cardano network launched the CIP-0113 token standard on mainnet on October 7.
That update aims to bring regulated finance to Cardano, letting stablecoin and asset issuers write compliance rules such as KYC, sanctions screening and freeze controls into native tokens.
Questions readers ask
What does a negative Bitcoin funding rate mean?
In a negative funding regime, short-position holders pay fees to long-position holders. It suggests demand for short exposure has increased relative to long positions, not that price must fall.
How low is the Bitcoin funding rate on Binance?
It fell to approximately -0.00215, the weakest reading since January. That sits below the 30-day moving average of approximately 0.00458.
Could a short squeeze follow the negative funding rate?
It is possible but unproven.
Did other crypto assets post weak funding rates too?
Yes. Cardano's funding rate fell to -0.0183%, its lowest level in 16 weeks, while its open interest dropped 10% to $526 million.
