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Bitcoin Perpetual Contract Capital Rate To Turn Negative for the Third Time in 2023

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It is reported that the capital rate of Bitcoin perpetual contract will turn negative for the third time in 2023. Each time the capital interest rate becomes n…

Bitcoin Perpetual Contract Capital Rate To Turn Negative for the Third Time in 2023

It is reported that the capital rate of Bitcoin perpetual contract will turn negative for the third time in 2023. Each time the capital interest rate becomes negative, the short liquidation volume will increase as the BTC price rises. In January and February, when the capital rate in January is negative, the duration is slightly longer than that in February.

In 2023, the capital rate of Bitcoin perpetual contract will be negative for the third time

Interpretation of the news:


The cryptocurrency market has been increasingly gaining popularity in recent years, with Bitcoin being the top-ranked digital asset. As Bitcoin’s market capitalization continues to rise, trading derivatives such as perpetual contracts have become popular among traders. However, the perpetual contract’s capital rate, which reflects the interest earned or paid by traders, is set to turn negative again in 2023.

The message notes that the capital rate has already turned negative two times, and it is set to happen for the third time in 2023. A negative capital rate reflects that the interest paid by long traders is less than the interest earned by short traders, resulting in a higher short liquidation volume as the price of BTC increases.

The message also indicates that the duration of the negative capital rate was slightly longer in January than in February, highlighting the importance of timing in cryptocurrency trading. As such, traders need to be alert and monitor the capital rates closely, ensuring that they enter and exit positions at the right time.

Cryptocurrency trading is highly unpredictable and is still a relatively new market, with regulations and guidelines still being developed. As such, traders need to be highly informed and have an in-depth understanding of market trends and forces before investing significant amounts of capital. While the market offers immense opportunities and can yield significant profits, it can also lead to significant losses if not carefully managed.

In conclusion, the capital rate of Bitcoin perpetual contracts turning negative for a third time in 2023 signifies that traders need to be vigilant and understand the market forces that influence interest rates. Timing is critical, and traders need to keep a close watch on the market to make informed decisions. With the cryptocurrency market’s volatility, caution and proper risk management are crucial to successful and profitable trading.

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