Fresh Bitcoin Long Positions Open Up On Exchanges As Funding Rates Turn Positive

On-chain data shows Bitcoin funding rates have turned positive, suggesting there have been some fresh long openings on derivative exchanges.

Bitcoin Funding Rate Turns Green After Derivative Exchange Inflows Spike Up

As pointed out by an analyst in a CryptoQuant post, the new long positions can drive the price up in the short term.

There are mainly two Bitcoin indicators of relevance here, the derivative exchange inflow CDD, and the funding rates.

First, the “derivative exchange inflow CDD” is a metric that tells us whether old BTC supply is moving into derivative exchange wallets or not.

When the value of this metric spikes up, it means a large number of previously dormant coins are entering into these exchanges right now.

Since investors usually deposit their BTC to derivatives for opening up new positions on the futures market, this kind of trend can lead to higher volatility in the price of the crypto as a result of the increased leverage.

Now, here is a chart that shows the trend in the 7-day moving average Bitcoin derivative exchange inflow CDD over the past few days:

Looks like the 7-day MA value of the metric has spiked up recently Source: BTCUSD on TradingViewFeatured image from Bastian Riccardi on Unsplash.com, charts from TradingView.com, CryptoQuant.com

Tags: bitcoinBitcoin Derivative Exchange InflowsBitcoin Funding RateBitcoin Long Positionsbitcoin longsbtcbtcusd

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