BTC On-Chain Analysis: A Look at Funding Rate & Open Interest

A look at Bitcoin’s on-chain data, specifically funding rates and open interest, allows us to determine when the conditions in the future market are unreasonable, and a correction is expected.

While the funding rate is not yet at the same level as it was on March 13, open interest has already reached this level.

Funding Rate

Funding rates indicate the premium that futures traders have to pay (or receive) to keep a position open.

If the funding rate is positive, traders with an open long position have to pay a premium to keep the trade open. If the funding rate is negative, traders with a short position have to pay a premium to keep the trade open.

High positive funding rates have historically signaled tops (and vice versa for negative rates). This was visible on March 13, when the funding rate was at 0.121%. This means that long traders pay a premium of 0.121% to short traders for keeping their trades open.

The next two days, a significant correction followed, and the funding rate reset back to 0. 

Currently, the funding rate is at 0.072%.

While they are similar, funding rates differ slightly between exchanges. 

Bybit has the highest funding rates at 0.121%, followed by Binance at 0.107% and Deribit at 0.098%. Therefore, opening a short position would be the most lucrative in these three exchanges. 

Conversely, the lowest funding rates are currently at Bitfinex – 0.00%, FTX – 0.012% and Kraken – 0.013%.

Open Interest

Open interest refers to the total amount of funds that are in open futures contracts. However, it does not show whether these funds are placed in long or short positions. 

Similarly to the funding rate, open interest tends to peak near or at a local top. This makes sense instinctively since long-traders might get euphoric near a top, while short-traders could see it as a good shorting opportunity. 

Therefore, since the open interest only measures the volume, not the direction, it makes sense that it would be the highest near a top. 

The total open interest was $22.771 billion on March 13. Yesterday, it reached $22.521 billion.

As for exchanges, Binance led with an open interest of slightly more than $4 billion, followed by ByBit with $3.5 billion and OKEx with $3 billion.

Conclusion

To conclude, both open interest and funding rates tend to peak at a local top. The former is currently at the same level as of March 13, while the latter is still lagging.

For BeInCrypto’s latest bitcoin (BTC) analysis, click here.

Disclaimer


All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

Leave a Reply

Your email address will not be published. Required fields are marked *

bitcoin
Bitcoin (BTC) $ 36,132.00 3.48%
ethereum
Ethereum (ETH) $ 2,428.66 0.83%
tether
Tether (USDT) $ 1.00 0.28%
polkadot
Polkadot (DOT) $ 21.13 0.85%
cardano
Cardano (ADA) $ 1.50 2.19%
binance-coin
Binance Coin (BNB) $ 349.13 1.93%
xrp
XRP (XRP) $ 0.843696 1.64%
litecoin
Litecoin (LTC) $ 163.75 1.01%
chainlink
Chainlink (LINK) $ 22.23 0.92%
bitcoin-cash
Bitcoin Cash (BCH) $ 587.45 0.18%
stellar
Stellar (XLM) $ 0.338779 4.37%
usd-coin
USD Coin (USDC) $ 1.01 0.50%
dogecoin
Dogecoin (DOGE) $ 0.318041 2.58%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 36,180.00 3.12%
uniswap
Uniswap (UNI) $ 21.81 2.21%
aave
Aave (AAVE) $ 288.02 1.16%
cosmos
Cosmos (ATOM) $ 12.10 0.18%
monero
Monero (XMR) $ 249.88 0.85%
eos
EOS (EOS) $ 4.89 3.53%
bitcoin-sv
Bitcoin SV (BSV) $ 162.74 1.67%
tron
TRON (TRX) $ 0.069101 2.14%
nem
NEM (XEM) $ 0.161332 5.36%
iota
IOTA (MIOTA) $ 1.03 2.55%
vechain
VeChain (VET) $ 0.107813 0.44%
tezos
Tezos (XTZ) $ 3.21 0.48%
theta-token
Theta Network (THETA) $ 7.77 4.68%
havven
Synthetix Network Token (SNX) $ 8.59 4.25%
avalanche-2
Avalanche (AVAX) $ 13.69 1.70%
neo
NEO (NEO) $ 47.00 3.78%
terra-luna
Terra (LUNA) $ 5.78 0.98%
dash
Dash (DASH) $ 164.19 3.77%
huobi-token
Huobi Token (HT) $ 13.30 3.20%
okb
OKB (OKB) $ 13.29 4.45%
elrond-erd-2
Elrond (EGLD) $ 80.20 4.15%
crypto-com-chain
Crypto.com Coin (CRO) $ 0.114399 4.18%
the-graph
The Graph (GRT) $ 0.620097 1.95%
compound-ether
cETH (CETH) $ 48.54 1.21%
solana
Solana (SOL) $ 37.04 0.78%
maker
Maker (MKR) $ 3,007.62 0.35%
filecoin
Filecoin (FIL) $ 70.72 2.32%
cdai
cDAI (CDAI) $ 0.021669 0.84%
dai
Dai (DAI) $ 1.00 0.30%
ftx-token
FTX Token (FTT) $ 31.28 2.24%
celsius-degree-token
Celsius Network (CEL) $ 7.01 0.16%
sushi
Sushi (SUSHI) $ 8.36 3.98%
kusama
Kusama (KSM) $ 411.21 3.96%
compound-governance-token
Compound (COMP) $ 306.06 2.22%
zcash
Zcash (ZEC) $ 128.84 0.28%
ethereum-classic
Ethereum Classic (ETC) $ 56.33 2.56%
decred
Decred (DCR) $ 132.65 5.48%
binance-usd
Binance USD (BUSD) $ 1.01 0.40%
compound-usd-coin
cUSDC (CUSDC) $ 0.022237 0.93%
zilliqa
Zilliqa (ZIL) $ 0.102755 2.88%
uma
UMA (UMA) $ 11.60 0.29%
yearn-finance
yearn.finance (YFI) $ 37,227.00 0.84%
leo-token
LEO Token (LEO) $ 2.43 1.10%
pancakeswap-token
PancakeSwap (CAKE) $ 15.98 4.14%
waves
Waves (WAVES) $ 14.85 1.39%
near
Near (NEAR) $ 3.01 3.64%
amp-token
Amp (AMP) $ 0.059720 7.85%
0x
0x (ZRX) $ 0.874315 1.64%
huobi-btc
Huobi BTC (HBTC) $ 35,992.00 3.82%
algorand
Algorand (ALGO) $ 0.987900 3.03%
digibyte
DigiByte (DGB) $ 0.054031 7.89%
icon
ICON (ICX) $ 0.913795 0.07%
hedera-hashgraph
Hedera Hashgraph (HBAR) $ 0.193407 4.32%
nexo
NEXO (NEXO) $ 1.90 6.23%
xsushi
xSUSHI (XSUSHI) $ 9.63 4.21%
ethos
Voyager Token (VGX) $ 2.26 3.55%
loopring
Loopring (LRC) $ 0.297980 1.46%
thorchain
THORChain (RUNE) $ 7.25 2.79%
ontology
Ontology (ONT) $ 0.910085 5.19%
renbtc
renBTC (RENBTC) $ 35,960.00 3.76%
nano
Nano (NANO) $ 6.26 3.01%
basic-attention-token
Basic Attention Token (BAT) $ 0.635923 4.96%
omisego
OMG Network (OMG) $ 4.76 3.05%
republic-protocol
REN (REN) $ 0.414545 4.92%
zencash
Horizen (ZEN) $ 82.07 1.28%
bittorrent-2
BitTorrent (BTT) $ 0.003452 2.96%
swissborg
SwissBorg (CHSB) $ 0.657262 4.95%
ravencoin
Ravencoin (RVN) $ 0.072602 4.34%
iostoken
IOST (IOST) $ 0.027097 5.86%
qtum
Qtum (QTUM) $ 8.72 5.66%
paxos-standard
Paxos Standard (PAX) $ 1.00 0.40%
venus
Venus (XVS) $ 22.97 3.27%
blockstack
Stacks (STX) $ 0.853561 5.87%
matic-network
Polygon (MATIC) $ 1.39 6.08%
curve-dao-token
Curve DAO Token (CRV) $ 2.14 2.75%
siacoin
Siacoin (SC) $ 0.015296 2.93%
quant-network
Quant (QNT) $ 52.90 3.64%
bancor
Bancor Network Token (BNT) $ 3.83 1.14%
reserve-rights-token
Reserve Rights Token (RSR) $ 0.028075 6.29%
fantom
Fantom (FTM) $ 0.245184 7.46%
mdex
Mdex (MDX) $ 1.97 2.97%
enjincoin
Enjin Coin (ENJ) $ 1.25 7.03%
energy-web-token
Energy Web Token (EWT) $ 7.65 2.28%
lisk
Lisk (LSK) $ 2.80 5.86%
ampleforth
Ampleforth (AMPL) $ 0.842535 1.98%
balancer
Balancer (BAL) $ 23.09 1.74%
terrausd
TerraUSD (UST) $ 1.00 0.38%
ocean-protocol
Ocean Protocol (OCEAN) $ 0.491900 5.93%
husd
HUSD (HUSD) $ 1.00 0.20%
nxm
Nexus Mutual (NXM) $ 92.94 0.97%
1inch
1inch (1INCH) $ 2.75 2.77%
bitcoin-gold
Bitcoin Gold (BTG) $ 56.68 3.46%
kyber-network
Kyber Network Crystal Legacy (KNCL) $ 1.71 3.17%
verge
Verge (XVG) $ 0.026780 3.33%
decentraland
Decentraland (MANA) $ 0.676690 5.01%
alpha-finance
Alpha Finance (ALPHA) $ 0.594052 2.77%
flow
Flow (FLOW) $ 11.96 7.48%
band-protocol
Band Protocol (BAND) $ 6.69 0.86%
status
Status (SNT) $ 0.070708 10.84%
dodo
DODO (DODO) $ 1.28 2.79%
bitcoin-cash-abc-2
Bitcoin Cash ABC (BCHA) $ 20.16 2.74%
compound-usdt
cUSDT (CUSDT) $ 0.021277 0.15%
xdce-crowd-sale
XDC Network (XDC) $ 0.050612 4.78%
staked-ether
Lido Staked Ether (STETH) $ 2,423.86 0.67%
arweave
Arweave (AR) $ 14.89 6.67%
polymath-network
Polymath Network (POLY) $ 0.202641 7.72%
safepal
SafePal (SFP) $ 0.961499 5.70%
true-usd
TrueUSD (TUSD) $ 1.00 0.35%
zkswap
ZKSwap (ZKS) $ 0.661795 3.43%
polkastarter
Polkastarter (POLS) $ 1.32 6.67%
ethlend
Aave [OLD] (LEND) $ 2.86 2.14%
helium
Helium (HNT) $ 12.73 3.89%
civic
Civic (CVC) $ 0.259642 4.21%
pundi-x
Pundi X [OLD] (NPXS) $ 0.001297 11.30%
kava
Kava.io (KAVA) $ 3.68 1.40%
golem
Golem (GLM) $ 0.262882 7.58%
harmony
Harmony (ONE) $ 0.078103 3.43%
nucypher
NuCypher (NU) $ 0.306214 7.86%
holotoken
Holo (HOT) $ 0.007499 2.60%
nusd
sUSD (SUSD) $ 1.01 0.55%
electroneum
Electroneum (ETN) $ 0.007548 14.91%
nervos-network
Nervos Network (CKB) $ 0.018729 4.47%
derivadao
DerivaDAO (DDX) $ 2.41 6.58%
district0x
district0x (DNT) $ 0.144557 5.49%
bitcoin-diamond
Bitcoin Diamond (BCD) $ 3.03 11.98%
trust-wallet-token
Trust Wallet Token (TWT) $ 0.358457 0.79%
rif-token
RSK Infrastructure Framework (RIF) $ 0.179924 2.43%
swipe
Swipe (SXP) $ 1.73 3.84%
gnosis
Gnosis (GNO) $ 171.93 0.52%
numeraire
Numeraire (NMR) $ 39.36 2.89%
rook
KeeperDAO (ROOK) $ 148.69 1.98%
kucoin-shares
KuCoin Token (KCS) $ 8.09 0.23%
btc-standard-hashrate-token
BTC Standard Hashrate Token (BTCST) $ 27.49 2.99%
aragon
Aragon (ANT) $ 4.47 1.40%
fetch-ai
Fetch.ai (FET) $ 0.262906 5.33%
litentry
Litentry (LIT) $ 3.19 5.69%
funfair
FUNToken (FUN) $ 0.020352 5.48%
chiliz
Chiliz (CHZ) $ 0.284928 8.61%
seth
sETH (SETH) $ 2,430.53 0.61%
oasis-network
Oasis Network (ROSE) $ 0.067548 6.39%
injective-protocol
Injective Protocol (INJ) $ 7.84 3.38%
vethor-token
VeThor Token (VTHO) $ 0.007756 2.74%
saffron-finance
saffron.finance (SFI) $ 415.00 0.55%
augur
Augur (REP) $ 18.91 6.32%
the-sandbox
The Sandbox (SAND) $ 0.272118 13.29%
singularitynet
SingularityNET (AGIX) $ 0.193206 0.75%
secret
Secret (SCRT) $ 1.34 2.73%
telcoin
Telcoin (TEL) $ 0.029499 3.21%
serum
Serum (SRM) $ 3.78 4.64%
gatechain-token
GateToken (GT) $ 3.89 3.87%
mainframe
Hifi Finance (MFT) $ 0.008880 5.64%
sbtc
sBTC (SBTC) $ 36,155.00 3.66%
compound-uniswap
cUNI (CUNI) $ 0.435885 3.47%
ardor
Ardor (ARDR) $ 0.169609 9.63%
vai
Vai (VAI) $ 0.897053 0.15%
utrust
UTRUST (UTK) $ 0.313185 4.58%
prometeus
Prometeus (PROM) $ 14.37 19.53%
reddcoin
Reddcoin (RDD) $ 0.002896 13.87%
monacoin
MonaCoin (MONA) $ 1.83 2.54%
noia-network
Syntropy (NOIA) $ 0.199390 3.36%
compound-0x
c0x (CZRX) $ 0.017854 2.52%
wink
WINkLink (WIN) $ 0.000433 4.21%
ankr
Ankr (ANKR) $ 0.085911 0.96%
bytom
Bytom (BTM) $ 0.075504 0.60%
rocket-pool
Rocket Pool (RPL) $ 11.75 1.70%
origintrail
OriginTrail (TRAC) $ 0.316106 1.64%
steem
Steem (STEEM) $ 0.408085 13.99%
maidsafecoin
MaidSafeCoin (MAID) $ 0.690562 3.16%
tomochain
TomoChain (TOMO) $ 1.49 0.31%
edgeware
Edgeware (EDG) $ 0.009485 0.16%
skale
SKALE (SKL) $ 0.286542 4.85%
stratis
Stratis (STRAX) $ 1.25 7.65%
hegic
Hegic (HEGIC) $ 0.105610 2.72%
komodo
Komodo (KMD) $ 1.08 13.11%
bitshares
BitShares (BTS) $ 0.048229 1.34%
unibright
Unibright (UBT) $ 1.01 2.82%
coinmetro
CoinMetro (XCM) $ 0.354806 9.99%
ark
Ark (ARK) $ 1.03 6.90%
mirror-protocol
Mirror Protocol (MIR) $ 3.75 3.68%
keep-network
Keep Network (KEEP) $ 0.414084 4.90%
neutrino
Neutrino USD (USDN) $ 1.01 0.48%
iexec-rlc
iExec RLC (RLC) $ 3.28 4.95%
harvest-finance
Harvest Finance (FARM) $ 55.85 0.13%
iotex
IoTeX (IOTX) $ 0.022732 1.63%
badger-dao
Badger DAO (BADGER) $ 12.40 6.98%
redfox-labs-2
RedFOX Labs (RFOX) $ 0.071259 4.94%
empty-set-dollar
Empty Set Dollar (ESD) $ 0.055240 1.34%
ultra
Ultra (UOS) $ 0.375900 0.45%
wanchain
Wanchain (WAN) $ 0.714957 3.55%
iris-network
IRISnet (IRIS) $ 0.077223 6.83%
perpetual-protocol
Perpetual Protocol (PERP) $ 7.77 0.07%
trustswap
Trustswap (SWAP) $ 0.979155 3.37%
tokenlon
Tokenlon (LON) $ 3.55 4.03%
orion-protocol
Orion Protocol (ORN) $ 6.95 1.62%
titanswap
TitanSwap (TITAN) $ 4.32 10.15%
tether-gold
Tether Gold (XAUT) $ 1,876.85 0.07%
wax
WAX (WAXP) $ 0.136860 3.82%
yfii-finance
DFI.money (YFII) $ 1,681.80 1.59%
aelf
aelf (ELF) $ 0.213286 6.83%
haven
Haven (XHV) $ 9.85 5.73%
pax-gold
PAX Gold (PAXG) $ 1,897.22 0.39%
defipulse-index
DeFiPulse Index (DPI) $ 303.63 0.89%
math
MATH (MATH) $ 1.41 1.12%
api3
API3 (API3) $ 2.71 7.78%
sora
Sora (XOR) $ 244.14 11.52%
dent
Dent (DENT) $ 0.003178 2.96%
loom-network
Loom Network (OLD) (LOOMOLD) $ 0.071302 7.11%
nftx
NFTX (NFTX) $ 54.14 0.44%
gala
Gala (GALA) $ 0.009608 4.55%
axie-infinity
Axie Infinity (AXS) $ 3.90 14.34%
beefy-finance
Beefy.Finance (BIFI) $ 1,131.89 4.39%
swingby
Swingby (SWINGBY) $ 0.105346 8.25%
parsiq
PARSIQ (PRQ) $ 0.646537 5.21%
akropolis
Akropolis (AKRO) $ 0.020224 4.62%
nest
Nest Protocol (NEST) $ 0.011636 11.40%
stakehound-staked-ether
StakeHound Staked Ether (STETH) $ 3,719.75 0.00%
akash-network
Akash Network (AKT) $ 2.99 6.45%
cream-2
Cream (CREAM) $ 142.20 6.71%
auto
Auto (AUTO) $ 1,064.37 2.74%
storj
Storj (STORJ) $ 0.931877 3.08%
e-radix
e-Radix (EXRD) $ 0.145059 17.69%
hive
Hive (HIVE) $ 0.341428 5.11%
chainx
ChainX (PCX) $ 5.98 17.42%
wrapped-nxm
Wrapped NXM (WNXM) $ 61.20 2.14%
hathor
Hathor (HTR) $ 0.418509 1.94%
gemini-dollar
Gemini Dollar (GUSD) $ 1.01 0.01%
frontier-token
Frontier (FRONT) $ 0.774688 7.35%
everid
Everest (ID) $ 0.367006 11.49%
lto-network
LTO Network (LTO) $ 0.225244 6.93%
power-ledger
Power Ledger (POWR) $ 0.204202 6.23%
livepeer
Livepeer (LPT) $ 25.90 0.03%
xdai-stake
xDAI Stake (STAKE) $ 7.55 0.89%
rari-governance-token
Rari Governance Token (RGT) $ 5.63 12.99%
cashaa
Cashaa (CAS) $ 0.030144 4.47%
energi
Energi (NRG) $ 1.96 4.39%
bytecoin
Bytecoin (BCN) $ 0.000451 2.14%
duckdaodime
DuckDaoDime (DDIM) $ 11.86 2.06%