Bitcoin (BTC) and Ethereum (ETH) funding rates are both positive, and sentiment is bullish. The correlation with traditional financial instruments is low, and CoinDesk’s Ethereum Trend Indicator (ETI) also shows a “strong uptrend.”
maintain bullish sentiment
A funding rate is a fee charged or collected based on the price difference between the futures market and the spot market. If the futures market has a higher price, the funding rate will be positive and traders with long positions will pay fees to traders with short positions.
A positive funding rate indicates bullish investor sentiment, and a negative one indicates bearish sentiment.
Bitcoin has had a positive funding rate since May 14 and Ethereum since May 27. The U.S. Securities and Exchange Commission (SEC) has sued crypto exchanges Binance and Coinbase for violating federal securities laws, targeting crypto more broadly. Nonetheless, bullish sentiment remains.
SEC Chairman Gary Gensler said, “We don’t need more digital currencies. It is near the previous level. Gensler’s remarks do not appear to have affected the behavior of market participants at this time.
No correlation with other financial instruments
Bitcoin and Ethereum have a high correlation of 0.79, but little correlation with other financial instruments. Bitcoin has a near-zero correlation with the US dollar, S&P500, Nasdaq Composite, and copper.
Correlation ranges from 1 to -1. A 1 indicates a perfect match, and a -1 indicates a perfect opposite correlation.
The trend indicator is a strong uptrend
The ETI signal changed from “uptrend” to “strong uptrend” on the 7th. By analyzing the period when the signals of bullish crossovers and bearish crossovers of the moving averages switch, the ETI provides a daily trend with 5 evaluations from “strong downtrend” to “strong uptrend”. .
The “strong uptrend” shows that this bullish cycle is bigger than the previous one.
｜Translation: coindesk JAPAN
｜Editing: Rinan Hayashi
｜Image: CoinDesk
｜Original: Funding Rates for Bitcoin, Ether Remain Positive, Indicating Bullish Sentiment
