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

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.

Interpretation of this information:

This message discusses the concept of capital rate in the context of perpetual futures contracts, where long positions pay fees to short positions when the interest rate is positive, and vice versa when the rate is negative. For Bitcoin, the daily capital rate has been positive since January 14, indicating that traders are optimistic about the asset and willing to pay fees to express bullish sentiment.

The first keyword that summarizes this message is perpetual futures contracts. This is a type of derivative contract that allows traders to speculate on the future price of an asset without actually owning it. Perpetual futures contracts differ from traditional futures contracts in that they do not have an expiration date and are settled daily. This means that the parties involved pay or receive fees based on the prevailing interest rate, which in turn is influenced by market conditions such as supply and demand.

The second keyword is capital rate, which represents the payment of fees between the holders of perpetual futures contracts. The capital rate can be positive or negative depending on whether long or short positions are paying fees, and it reflects the market sentiment towards the asset. A positive capital rate indicates that traders are willing to pay fees to maintain their position and express bullish sentiment, while a negative capital rate suggests the opposite.

The third keyword is Bitcoin, which is the asset being discussed in this message. Bitcoin is a decentralized digital currency that operates through a peer-to-peer network and is not controlled by any central authority. Bitcoin has gained popularity in recent years as a store of value and a means of payment, and its price is highly volatile due to various factors such as supply and demand, regulatory changes, and market sentiment.

In conclusion, this message highlights the importance of capital rate in the context of perpetual futures contracts and how it reflects the market sentiment towards an asset such as Bitcoin. The positive capital rate suggests that traders are optimistic about Bitcoin and willing to pay fees to express their bullish sentiment. This information can be useful for investors who want to make informed decisions about their trading strategies.