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Average funding rate for perpetual futures contracts in bitcoin remains positive, but the largest token by market capitalization is on track for its biggest weekly drop since early november as. Perpetuals or futures with no expiry use funding rates to keep prices for perpetuals in sync with the spot prices. Funding rates, charged by exchanges every eight hours, refer to the cost of holding bullish long or bearish short positions in the perpetual (perps) futures (with no expiry).

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Bitcoin struggles near $80,000 as the funding rate turns slightly negative Funding rates on bybit and deribit rose to 95% and 56%, respectively Negative funding rates typically mark potential bottoming patterns in bitcoin.

Since 2023, the funding rate has mostly been positive due to bitcoin being in a bull market, yet it has come with brief periods of negative rates, which tend to occur during price bottoms.

Bitcoin's perpetual futures funding rates, periodic payments made between long and short positions in perpetual futures contracts, have flipped negative, according to data source.