Glassnode Analyzes Bitcoin Funding Rates, Awaiting Bullish Reversal
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 06 2026- Market Sentiment Analysis: Glassnode's latest data indicates that the seven-day moving average for Bitcoin funding rates is currently around 0.003%, which, while an improvement from recent negative values, remains below the historical threshold of 0.01%, suggesting the market has not yet entered a strong bullish phase.
- Funding Rate Mechanism: The funding rate serves as a critical indicator in perpetual futures trading, with positive rates indicating bullish sentiment and negative rates reflecting short dominance; the current neutral level shows cautious optimism but lacks strong upward momentum.
- Historical Context: Historical data shows that funding rates typically need to sustain above 0.01% to confirm enhanced market confidence during the early stages of a bull market, while the current level of 0.003% indicates the market is still in an accumulation phase without significant shifts.
- Impact on Trading Strategies: The analysis encourages traders to recalibrate expectations, suggesting that while the risk of a long squeeze has diminished, conditions for high-conviction leveraged long trades are not fully present, advising investors to adopt a phased accumulation strategy rather than rushing into full positions.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
