1. PixelPlaygroundHome
  2. Blockchain Briefs

Positive Capital Rate Indicates Optimism among BTC Traders

• Blockchain Briefs • 176 views

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 Indicates Optimism among BTC 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 discussing the significance of the capital rate in the context of perpetual futures contracts for Bitcoin. According to the message, the capital rate represents the payment of fees between those holding long and short positions in these contracts. When the interest rate is positive, long position holders pay fees to short position holders. Conversely, when the capital rate is negative, short position holders pay fees to long position holders.

The message then notes that for Bitcoin, the daily capital rate has been positive since January 14, indicating that investors with long positions are paying fees to express their bullish sentiment. This suggests that BTC traders are optimistic about the asset’s value, as they are willing to pay fees to maintain their positions.

This trend could be seen as an indication of market confidence, with investors showing a willingness to bet on Bitcoin’s continued success. The trend could also be seen as a signal of an ongoing price rally or a sign of steady growth in Bitcoin’s value.

Overall, the message suggests that the concept of the capital rate is an important one for those trading perpetual futures contracts in Bitcoin, and that the current trend of a continuous positive capital rate is indicative of strong market confidence.

In terms of the broader market trends, the message suggests that BTC traders are confident in a continued upward trajectory of Bitcoin value, and are willing to bet on this trend. It remains to be seen whether this trend will continue or whether it will signal a short-term shift in market sentiment.

Keywords:

1. Capital Rate: Refers to the payment of fees between holders of long and short positions in perpetual futures contracts.

2. Perpetual Futures Contracts: Derivative contracts that allow for the trading of an underlying asset without having to take physical possession of it.

3. Bitcoin: A digital cryptocurrency that is based on a decentralized network and uses cryptography to secure transactions and control the creation of new units.

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/3049/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 02/24/2023 08:15
Next 02/24/2023 08:28

Recommended articles