The Market Perceives Positive Sentiment Heading Into the 2020 Bitcoin Halving

As Bitcoin (BTC) fast approaches its scheduled third halving, several metrics are now pointing toward positive market sentiment going into this most-anticipated event.

The perpetual funding rate turns to positive territory, suggesting a positive market sentiment

The perpetual funding rate serves as a useful indicator to gauge overall market sentiment. When the rate is positive, long positions periodically pay short positions and vice versa. Funding rates also tend to correlate with market sentiment, meaning that when the market is strongly bullish or bearish, funding rates tend to be positive or negative, respectively.

The perpetual funding rate turned extremely negative during the Black Thursday market crash and crept back up to near-positive territory following the market crash, but it faced difficulty breaking to the positive side. The funding rate has weakly broken to the positive side during the first week of May while the Bitcoin network is gearing toward the third halving.