High Risk Appetite Is A Trigger For Positive Funding Rates Arab Chain stated that investors usually considered these high funding levels as an indicator of increased short-term risk. Nonetheless, this is common when optimism is not supported by a clear improvement in BTC’s price trend and the broader market.
The sharp increase in funding rates coincides with traders keeping a careful eye on Ethereum’s capacity to maintain momentum in the face of shifting market conditions. At the time of writing, ETH’s price was trading at $1,787, showing a nearly 5% drop over the past day.
