TechFlow news, July 1 — According to recent research by cryptocurrency exchange BitMEX, the frequency of extreme funding rates in Bitcoin perpetual contracts has declined by 90% since 2016. The study analyzed nearly a decade of data from the XBTUSD perpetual swap contract and found that funding rates remained stable during 2024–2025 even as Bitcoin approached $100,000.
Funding rates are periodic payments exchanged between long and short positions in perpetual contracts, designed to align the contract price with the spot price. The significant reduction in extreme funding rates indicates decreased market speculation, enhanced liquidity, and more efficient arbitrage mechanisms.
BitMEX CEO Stephan Lutz said this trend reflects Bitcoin’s transformation from a speculative asset into a stable financial instrument. The report also noted that Bitcoin ETFs launched in 2024 and emerging DeFi protocols have facilitated large-scale arbitrage, further stabilizing the market and increasing institutional adoption of crypto assets.
