Bitcoin’s Bullish Signals Amid Funding Rate and Hash Rate Trends
- Bitcoin‘s funding rate turned negative to -1.8%, the lowest since early this year, indicating a historically bullish signal.
- The hash rate is at a moving average of 985.5 EH/s, down from its all-time high of 1,065.7 EH/s in November.
- Bitcoin’s price surged above $79,000 this week for the first time since January, marking an over 11% increase in the last month.
- Negative funding rates have historically led to average returns of up to 19.4% over a month and up to a staggering return of nearly 70% over six months.
- Spot Bitcoin exchange-traded products saw positive inflows in six of the last seven weeks through April after significant outflows earlier in the year.
Analysts from VanEck highlight that recent trends in Bitcoin‘s hash rate and funding rates suggest potential for further price gains based on historical patterns. The current recovery in hash rate after three decline episodes aligns with previous instances where Bitcoin prices rose significantly afterward.
The shift to net positive flows in Bitcoin exchange-traded products indicates renewed institutional interest, supporting bullish market conditions alongside favorable on-chain metrics like negative funding rates and hash rate rebounds (Source).
