In 2023, the capital rate of Bitcoin perpetual contract will be negative for the third time
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.
Interpretation of this information:
The message is referring to the capital rate of Bitcoin perpetual contracts and how it may turn negative for the third time in 2023. This means that those who hold these contracts will owe money instead of earning interest on their holdings. This is not an unusual occurrence in the world of financial trading, but it can have implications for those who are holding these contracts.
When the capital interest rate becomes negative, it often leads to an increase in the short liquidation volume. This means that more people are selling their Bitcoin assets in order to meet margin requirements. Essentially, they are forced to sell their assets to cover their losses. This creates a downward pressure on the price of Bitcoin.
The message also notes that in January and February, there is a slight difference in the duration of the negative capital rate. This may indicate that there are different factors at play in each of these months that are contributing to the negative rate.
Overall, this message is suggesting that there may be some turbulence in the Bitcoin market in 2023 as a result of the negative capital rate. Investors who are holding these contracts should be aware of the potential risks and take steps to protect their investments. This may include diversifying their holdings or liquidating their assets before the negative rate takes effect.
It is important to note that this message is not a guarantee of what will happen in the future. Financial markets are complex and can be influenced by a wide range of factors. Investors should always do their own research and make their own decisions based on the best available information.
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