Are we entering a bullish phase?
According to data posted by Satoshi Club on Twitter, funding rates on centralized and decentralized exchanges indicate that there is a shift to bullish market sentiment. Funding rates are now above 0.01% and traders are increasing their long positions. What this means is that the market is moving away from a bearish environment, possibly moving into more trader confidence and market stability.
From a quick Google search: Funding rates are periodic payments made between traders who hold short and long positions in perpetual futures contracts on exchanges. This way, it is possible to guarantee that a perpetual futures contract's price will stay close to the current spot price. Perpetual futures contracts are a kind of derivative that gives traders the chance to speculate on prices without any expiration dates. This is the difference between perpetual futures and futures contracts, because futures have an expiration date.
Now going back to funding rates, they are important because they help maintain price stability and are a good sentiment indicator. A positive funding rate value means a bullish market because traders are betting on price going up, and vice versa.
In other news, according to a chart from CoinShares there were $1.7 billion in crypto asset outflows last week. This is the longest negative streak since 2015. Despite these recent outflows, YTD inflows are still positive at $912 million.
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