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Positive Capital Rate Signals Optimistic Bitcoin Traders

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It is reported that the capital rate represents the payment of fees between the holders of perpetual futures contracts. When the interest rate is positive, the…

Positive Capital Rate Signals Optimistic Bitcoin Traders

It is reported that the capital rate represents the payment of fees between the holders of perpetual futures contracts. When the interest rate is positive, the holders of long positions pay fees to the holders of short positions to maintain the counterparty of the transaction. When the capital rate is negative, the opposite is true. Short pays long. The data shows that for Bitcoin, since January 14, the daily capital rate has been positive, except for the neutral value on February 12. Investors with long positions expect asset values to increase, while short investors expect asset values to decline. The continuous positive capital rate indicates that BTC traders are optimistic about the asset and are willing to pay fees to express their bullish sentiment.

Viewpoint: The fund rate of Bitcoin perpetual contract is positive for 10 consecutive days, reflecting investors’ optimism

Interpretation of the news:


The message is about the significance of the capital rate in perpetual futures contracts and its impact on Bitcoin traders’ sentiment. The capital rate refers to the payment of fees between the holders of long and short positions to maintain the counterparty of the transaction. When the interest rate is positive, long traders pay fees to short traders, and the opposite is true when the capital rate is negative.

The data shows that the daily capital rate for Bitcoin has been positive since January 14, except for a neutral value on February 12. This means that long traders are paying fees to short traders to express their bullish sentiment, indicating that they expect the asset’s value to increase. In contrast, short traders expect the asset’s value to decline and receive fees from long traders.

The continuous positive capital rate for Bitcoin signals that traders are optimistic about the asset’s potential and are willing to invest in it despite its volatility. It suggests that investors with long positions are confident that Bitcoin will continue to rise in price, and they are determined to keep their positions.

The positive capital rate may also indicate that there is an increase in demand for Bitcoin, making it more difficult to buy the asset at its current price. As a result, long traders may be willing to pay fees to maintain their positions, expecting that they will profit from the subsequent price increase.

In summary, the message reveals that the capital rate plays a vital role in perpetual futures contracts and Bitcoin trading. The continuous positive capital rate for Bitcoin signals that traders are optimistic about the asset’s potential and are willing to pay fees to express their bullish sentiment. This is a positive signal for the cryptocurrency market, indicating that there is an increase in demand for Bitcoin and that investors are confident in its growth potential.

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