The Binance Bitcoin Funding Rates metric has emerged as a vital tool for analyzing Bitcoin’s market trends. According to CryptoQuant’s verified analyst Burak Kesmeci, examining funding rates during the 2020-2021 bull run reveals patterns that could guide today’s market behavior. Let’s explore the key phases of past bull cycles and how they relate to the current market.
Phase 1: July 2020 – The Calm Before the Storm
In mid-2020, Binance Bitcoin Funding Rates remained stable at 0.01 for weeks. This period marked a sense of calm in the market, which was followed by a surge in demand for Bitcoin.
The price climbed rapidly from $9,000 to $12,000, and funding rates spiked to 0.10, signaling a bullish shift in market sentiment.
Phase 2: November 2020 – A Rally and Correction
As Bitcoin consolidated in the $12,000 range, funding rates briefly turned negative before flipping positive, reaching 0.08. This movement was a precursor to Bitco