Less than 24 hours after ETH -0.05%-news/">Ethereum‘s technical upgrade Merge was planned, the cost of holding a short position or bearish bet in the Ethereum-related perpetual futures market is soaring.
Funding rates, or costs, for holding bullish/bearish (long/short) bets in ethereum perpetual futures listed on cryptocurrency exchange Binance are at their lowest levels since May 2021.
Advertisements
Average funding rates on major exchanges, including Binance, fell to record lows, according to data tracked by Coinalyze.
In other words, compensation paid by shorts to longs to maintain positions has soared and hit a 16-month high on Binance, reflecting excessive demand for bets on a potential price drop.
DISCLAIMER: The information provided by WebsCrypto does not represent any investment suggestion. The articles published on this site only represent personal opinions and have nothing to do with the official position of WebsCrypto.
