TechFlow news, September 11 — According to CoinDesk, K33 Research stated in its latest market report that the 30-day average funding rate for perpetual contracts has turned negative, an event that has occurred only six times since 2018. Analysts Vetle Lunde and David Zimmerman noted that historically, a negative monthly funding rate often signals a market bottom. Data shows that within 90 days following previous instances of this indicator turning negative, the average return was 79%, with a median return of 55%.
Meanwhile, derivatives open interest has risen to its highest level since late July, with short positions continuing to increase. K33 Research believes that this situation, combined with persistently negative funding rates, exposes the market to potential short squeeze risks. The report states that similar funding rate conditions provide a highly compelling rationale for actively positioning in Bitcoin over the coming months. However, analysts also caution that uncertainty surrounding the U.S. presidential election could impact cryptocurrency prices until the November election concludes.
