BitMEX Study Reveals 90% Drop in Extreme Bitcoin Perpetual Futures Funding Rates Since 2016
The post BitMEX Study Reveals 90% Drop in Extreme Bitcoin Perpetual Futures Funding Rates Since 2016 appeared on BitcoinEthereumNews.com. Editorial Note: The following content does not reflect the views or opinions of BeInCrypto. It is provided for informational purposes only and should not be interpreted as financial advice. Please conduct your own research before making any investment decisions. BitMEX, one of the safest crypto exchanges, today announced the findings of its comprehensive study on XBTUSD, the longest-running Bitcoin perpetual swap, to shed light on the evolution of the funding rate market. The research, spanning from May 2016 to May 2025, reveals a significant shift in funding rate patterns, marking a transition from high volatility to unprecedented market stability. Since BitMEX pioneered perpetual swaps in 2016, they’ve become one of the most traded financial products worldwide. A key component of these products are funding rates, which are periodic payments made between long and short position holders of a perpetual swap contract to maintain a token’s futures price with its spot price. Funding rates are crucial for identifying market arbitrage opportunities and to gauge market sentiment. The study, which delved into the extensive history of BitMEX’s XBTUSD perpetual swap, uncovered several key insights: Extreme Funding Rates Plummet by 90%: Since 2016, the occurrence of extreme funding rates has dropped by a staggering 90%. Notably, data from 2024-2025 shows remarkable stability, even as Bitcoin surged past $100,000. This trend indicates a clear maturation of the crypto market, transforming Bitcoin from a highly speculative asset into a more stable financial instrument. Mainstream Integration Drives Stability: The launch of Bitcoin ETFs in January 2024 and the emergence of decentralised finance (DeFi) protocols like Ethena have been instrumental in facilitating large-scale arbitrage, further anchoring futures prices to spot prices and contributing to market efficiency. Era of Stable Funding Rates: The current environment of stable funding rates suggests significantly reduced market volatility. This stability could position…
The post BitMEX Study Reveals 90% Drop in Extreme Bitcoin Perpetual Futures Funding Rates Since 2016 appeared on BitcoinEthereumNews.com.
Editorial Note: The following content does not reflect the views or opinions of BeInCrypto. It is provided for informational purposes only and should not be interpreted as financial advice. Please conduct your own research before making any investment decisions. BitMEX, one of the safest crypto exchanges, today announced the findings of its comprehensive study on XBTUSD, the longest-running Bitcoin perpetual swap, to shed light on the evolution of the funding rate market. The research, spanning from May 2016 to May 2025, reveals a significant shift in funding rate patterns, marking a transition from high volatility to unprecedented market stability. Since BitMEX pioneered perpetual swaps in 2016, they’ve become one of the most traded financial products worldwide. A key component of these products are funding rates, which are periodic payments made between long and short position holders of a perpetual swap contract to maintain a token’s futures price with its spot price. Funding rates are crucial for identifying market arbitrage opportunities and to gauge market sentiment. The study, which delved into the extensive history of BitMEX’s XBTUSD perpetual swap, uncovered several key insights: Extreme Funding Rates Plummet by 90%: Since 2016, the occurrence of extreme funding rates has dropped by a staggering 90%. Notably, data from 2024-2025 shows remarkable stability, even as Bitcoin surged past $100,000. This trend indicates a clear maturation of the crypto market, transforming Bitcoin from a highly speculative asset into a more stable financial instrument. Mainstream Integration Drives Stability: The launch of Bitcoin ETFs in January 2024 and the emergence of decentralised finance (DeFi) protocols like Ethena have been instrumental in facilitating large-scale arbitrage, further anchoring futures prices to spot prices and contributing to market efficiency. Era of Stable Funding Rates: The current environment of stable funding rates suggests significantly reduced market volatility. This stability could position…
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