K33 Research: perpetual funds rate remains negative, signalling bitcoin bottoming out

With the correlation between Bitcoin and the S&P 500 reaching a 23-month high of 0.67, the cryptocurrency market will be more significantly impacted by Wednesday's CPI release and the FOMC meeting on 18 September, when the Federal Reserve is expected to make its much-anticipated latest decision on interest rates, analysts at K33 Research said, ChainCatcher News. However, continued bearish sentiment has pushed average daily funding rates in the perpetual contract market to the lowest level since March 2023.

Analysts noted, ‘For the seventh time since 2018, the 30-day average funding rate has touched negative levels. This provides a compelling case for positive price action in the months ahead.’ According to K33, since 2018, after the 30-day average return turned negative, the 90-day average return was 79 per cent and the median 90-day return was 55 per cent.