Bitcoin futures open interest falls to a yearly low, with short funding rates turning negative
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AT A GLANCE
Bitcoin open interest fell to one of its yearly lows, while funding rates turned negative, indicating that traders remaining in the market favored short positions.
Article
Analysis: Bitcoin shorts are paying to bet on further declines, with futures positions nearing their yearly low
PANews September 28 reported, citing CoinDesk, that funds are flowing out of the Bitcoin futures market, while traders remaining in the market are willing to pay to maintain short positions. Coinglass data shows that Bitcoin open interest stood at 652000 units BTC, one of the lowest levels this year, after peaking at 800000 units at the beginning of the year. Although Bitcoin’s price rose 40%in the third quarter, traders are still avoiding leveraged bets. Perpetual contract funding rates turned negative again, averaging -0.3%on major exchanges, indicating that shorts are actively pursuing trades and willing to pay longs to maintain bearish positions. Bitcoin fell by more than 24 over the past 2%hours to approximately 82800 USD, after Trump refused to rule out the possibility of further strikes against Iran before the U.S. midterm elections. Gold also fell by 24 over the past 3%hours to approximately 4150 USD/ounce. The USD index rose above 1...
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🔗https://www.panewslab.com/zh/articles/01a0e763-e077-714b-90fe-154f3d6658a2
Key points
01
PANews reported, citing CoinDesk, that funds are flowing out of the Bitcoin futures market.
02
Coinglass data shows that Bitcoin open interest stood at 652000 units BTC, one of the lowest levels this year, after peaking at 800000 units at the beginning of the year.
03
The original article states that Bitcoin’s price rose 40%in the third quarter, but traders still avoided leveraged bets.
The original article states that Bitcoin fell by more than 24 over the past 2%hours to approximately 82800 USD。
06
The original article states that gold fell by 24 over the past 3%hours to approximately 4150 USD/ounce.
07
The original article states that Trump refused to rule out the possibility of further strikes against Iran before the U.S. midterm elections.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
Open interest represents futures positions that have not yet been settled. Its level was near the yearly low, indicating that the scale of positions in the futures market had decreased. A negative funding rate means that the party maintaining short positions is willing to pay the long side; combined with the price decline described in the article, this indicates that traders remaining in the market at the time had a stronger bearish bias.
Why it matters to readers
The simultaneous decline in open interest and negative funding rates can be used to assess leveraged trading activity and directional market preference. The data in the article reflects reduced futures funding and a stronger bearish bias among shorts, but cannot alone prove that Bitcoin will continue to decline.
Beginners can understand it this way: less capital was being used for leveraged bets, while the remaining traders had relatively strong bearish sentiment. Do not judge the subsequent trend solely from the funding rate or a single-day decline.
Risks and unknowns
The content was republished by PANews from CoinDesk and Coinglass data, and no direct verification materials from the exchange or data platform were provided.
The end of the original article is truncated, and the statement related to the USD index is incomplete.
The evidence does not specify the year, so the year to which the data belongs cannot be confirmed from the main text alone.
Related Developments
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The article places Bitcoin’s decline after Trump’s related remarks, but the available evidence is insufficient to confirm a causal relationship between the two.
Funding rates and open interest can describe the market’s state at the time, but cannot confirm that prices will decline further.
Related concepts
Open Interest
This term is not in the glossary yet. Browse related concepts in the glossary.
A derivative contract with no expiration date, designed for continuous holding, whose funding rate mechanism helps keep its price close to that of the underlying asset.
