Derivatives · positioning

Bitcoin Funding Rate

The funding rate is the periodic payment exchanged between long and short holders of Bitcoin perpetual futures. It keeps the perpetual price tethered to spot and, read over time, shows which side is paying to hold its position.

What is the Bitcoin funding rate?

A perpetual future has no expiry, so exchanges use funding to anchor it to the underlying spot price. At each funding interval, one side pays the other a small percentage of position value. When the rate is positive, longs pay shorts; when it is negative, shorts pay longs.

How it is calculated

Each venue computes funding from the gap between the perpetual and an index (spot) price, plus an interest component, then applies it per interval. Our page follows the aggregated funding series across tracked venues rather than a single exchange.

How to read it

Persistently positive funding means leveraged demand is skewed long and paying to stay there — a crowded-long condition that can precede long liquidations. Persistently negative funding is the mirror case. Extremes in either direction matter more than the sign on any single day.

What it does not tell you

Funding is a positioning signal, not a price forecast. It says who is paying, not what happens next, and a crowded side can stay crowded for a long time. Live values and per-venue detail are in the authenticated app.

Bitcoin funding rate — FAQ

What does a positive funding rate mean?

A positive funding rate means long positions pay short positions at each funding interval, which indicates leveraged demand is skewed to the long side.

What does a negative funding rate mean?

A negative funding rate means short positions pay longs, indicating leveraged positioning is skewed to the short side.

How often is funding paid?

Most venues settle funding several times a day at fixed intervals; the exact schedule and formula vary by exchange, which is why an aggregated view is more robust than a single venue.

Does funding predict Bitcoin's price?

No. Funding describes positioning pressure, not direction. Crowded funding can persist for a long time and is best read alongside open interest and price behavior.