{"id":53999,"date":"2025-10-13T12:30:28","date_gmt":"2025-10-13T09:30:28","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=53999"},"modified":"2025-10-13T11:59:03","modified_gmt":"2025-10-13T08:59:03","slug":"crypto-derivatives-funding-rates-hit-3-year-low","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/crypto-derivatives-funding-rates-hit-3-year-low\/","title":{"rendered":"Crypto Derivatives Funding Rates Hit 3-Year Low!"},"content":{"rendered":"<p data-start=\"284\" data-end=\"565\"><strong>Crypto<\/strong> derivatives <strong>funding rates<\/strong> have dropped to the lowest levels seen since the 2022 bear market, following massive liquidations. Analysts suggest this decline indicates that excessive leveraged positions have cleared the market, potentially paving the way for a price rally.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coinengineer.net\/blog\/crypto-derivatives-funding-rates-hit-3-year-low\/#Historic_Drop_in_Funding_Rates_Leverage_Reset\" title=\"Historic Drop in Funding Rates: Leverage Reset\">Historic Drop in Funding Rates: Leverage Reset<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/crypto-derivatives-funding-rates-hit-3-year-low\/#Short_Position_Pressure_Could_Trigger_a_Rally\" title=\"Short Position Pressure Could Trigger a Rally\">Short Position Pressure Could Trigger a Rally<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/coinengineer.net\/blog\/crypto-derivatives-funding-rates-hit-3-year-low\/#Historic_Liquidation_Wave_Crypto_Black_Friday\" title=\"Historic Liquidation Wave: Crypto Black Friday\">Historic Liquidation Wave: Crypto Black Friday<\/a><\/li><\/ul><\/nav><\/div>\n<h3 data-start=\"567\" data-end=\"621\"><span class=\"ez-toc-section\" id=\"Historic_Drop_in_Funding_Rates_Leverage_Reset\"><\/span>Historic Drop in Funding Rates: Leverage Reset<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"622\" data-end=\"1079\">On-chain analytics platform Glassnode reported that crypto derivatives funding rates have reached a three-year low. Experts describe this as \u201cone of the most aggressive leverage cleanups in crypto history.\u201d<\/p>\n<p data-start=\"622\" data-end=\"1079\">Funding rates balance long and short positions among traders in futures contracts. When rates turn negative, traders take more short positions, but this scenario can create opportunities for a rapid price rebound if markets move upward.<\/p>\n<p data-start=\"622\" data-end=\"1079\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-54000 \" src=\"https:\/\/coinengineer.net\/blog\/wp-content\/uploads\/2025\/10\/glassnode-1024x550.jpg\" alt=\"\" width=\"754\" height=\"405\" srcset=\"https:\/\/coinengineer.net\/blog\/wp-content\/uploads\/2025\/10\/glassnode-1024x550.jpg 1024w, https:\/\/coinengineer.net\/blog\/wp-content\/uploads\/2025\/10\/glassnode-300x161.jpg 300w, https:\/\/coinengineer.net\/blog\/wp-content\/uploads\/2025\/10\/glassnode-768x413.jpg 768w, https:\/\/coinengineer.net\/blog\/wp-content\/uploads\/2025\/10\/glassnode-1536x825.jpg 1536w, https:\/\/coinengineer.net\/blog\/wp-content\/uploads\/2025\/10\/glassnode-2048x1100.jpg 2048w\" sizes=\"auto, (max-width: 754px) 100vw, 754px\" \/><\/p>\n<h3 data-start=\"1081\" data-end=\"1134\"><span class=\"ez-toc-section\" id=\"Short_Position_Pressure_Could_Trigger_a_Rally\"><\/span>Short Position Pressure Could Trigger a Rally<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"1135\" data-end=\"1523\">Extremely low funding rates increase the risk of a short squeeze. When many traders open short positions expecting price drops, the market can spike sharply upward.<\/p>\n<p data-start=\"1135\" data-end=\"1523\">CoinGlass data shows the long\/short ratio has shifted toward bullish sentiment. Around 54% of participants hold long positions, while 29% maintain short positions. Long positions account for 60% of total holdings.<\/p>\n<p data-start=\"1525\" data-end=\"1766\">Meanwhile, <a href=\"https:\/\/coinengineer.net\/blog\/cmc-crypto-alt-season-index-34-bitcoin-season\/\">Bitcoin<\/a> (BTC) rebounded over 5% after dropping below $110,000 in the last 24 hours. Ethereum (ETH) gained 12%, climbing from $3,800 to $4,183. This recovery has boosted short-term investor confidence in crypto markets.<\/p>\n<h3 data-start=\"1768\" data-end=\"1822\"><span class=\"ez-toc-section\" id=\"Historic_Liquidation_Wave_Crypto_Black_Friday\"><\/span>Historic Liquidation Wave: Crypto Black Friday<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"1823\" data-end=\"2435\">Trading platform TradingView labeled the recent event as \u201cthe largest leveraged liquidation in crypto history.\u201d After former U.S. President Donald Trump announced new tariffs on China, whales increased short positions.<\/p>\n<p data-start=\"1823\" data-end=\"2435\">About 1.6 million leveraged traders were liquidated, causing a $1 trillion market value drop in just a few hours. Kobeissi Letter reported Bitcoin\u2019s first-ever $20,000 red candle and a $380 billion decline in market capitalization. As short positions closed, the market formed a V-shaped recovery, showing how clearing excessive leverage can create healthier market conditions.<\/p>\n<p data-start=\"1823\" data-end=\"2435\"><em>You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don\u2019t forget to follow us on our\u00a0<a href=\"https:\/\/t.me\/coinengineernews\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Telegram,\u00a0<\/a><a href=\"https:\/\/www.youtube.com\/@CoinEngineer\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">YouTube<\/a>,\u00a0and\u00a0<a href=\"https:\/\/twitter.com\/coinengineers\" target=\"_blank\" rel=\"nofollow noopener\">Twitter<\/a>\u00a0channels for the latest\u00a0<a title=\"News\" href=\"https:\/\/coinengineer.net\/blog\/news\/\" data-internallinksmanager029f6b8e52c=\"7\">news<\/a>\u00a0and updates.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Crypto derivatives funding rates have dropped to the lowest levels seen since the 2022 bear market, following massive liquidations. Analysts suggest this decline indicates that excessive leveraged positions have cleared the market, potentially paving the way for a price rally. Historic Drop in Funding Rates: Leverage Reset On-chain analytics platform Glassnode reported that crypto derivatives<\/p>\n","protected":false},"author":36,"featured_media":45245,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[657,2],"tags":[552,1230,24725,847,9558,1006,10672,2231],"class_list":["post-53999","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-en","category-news","tag-bitcoin-price","tag-coin-analysis","tag-crypto-funding-rates","tag-crypto-news","tag-derivatives-market","tag-ethereum-price","tag-leveraged-trading","tag-market-analysis"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Crypto Derivatives Funding Rates Hit 3-Year Low! - Coin Engineer<\/title>\n<meta name=\"description\" content=\"Crypto derivatives funding rates hit a 3-year low, signaling a potential rally as short positions create upward pressure in the market.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/crypto-derivatives-funding-rates-hit-3-year-low\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Crypto Derivatives Funding Rates Hit 3-Year Low! 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