Bitcoin, Ethereum Futures Markets Maintain Long Position Dominance

The perpetual futures markets for Bitcoin (BTC) and Ethereum (ETH) are showing a long position advantage. Both assets have positive funding rates, with Ethereum's funding rate and long position share formed at higher levels than Bitcoin's. While market participants' preference for upside positions is confirmed, there is also concern that if price volatility expands, long position liquidations could translate into selling pressure.

Long-to-Short Account Ratio... Ethereum Shows Higher Long Share

The difference between the two assets is also evident in the long-to-short account ratio. The long share based on all accounts is 75.36% for Bitcoin and 77.85% for Ethereum. Ethereum's long account share is 2.49 percentage points higher than Bitcoin's.

By position value of top traders, the long share was 65.15% for Bitcoin and 66.00% for Ethereum. Although the gap is smaller compared to the all-account figures, both assets show a structure in which top traders' long position value exceeds their short position value.

However, the all-account long share is a metric calculated based on the number of accounts. Because position sizes vary by account, this should not be interpreted as meaning that 75–78% of total invested capital is concentrated in long positions.

Open Interest Diverges... Bitcoin Rises, Ethereum Falls

Open interest movements diverged between Bitcoin and Ethereum. Over the past hour, Bitcoin's open interest increased by 0.06%, while Ethereum's decreased by 0.03%. Bitcoin's open interest rose slightly, likely due to new positions being opened or existing positions being expanded, whereas Ethereum's total open position size appears to have declined slightly. However, an increase in open interest alone cannot be taken as evidence of new long positions flowing in.

Price movements were limited. Since 00:00 UTC, Bitcoin rose 0.23% and Ethereum gained 0.05%. This differs from the 24-hour change figures.

Positive Funding Rates Are Not Necessarily a Bearish Signal

The key variable in the current futures market is whether actual price increases and trading participation support the maintained long position dominance.

If prices fall while funding rates are positive, long position holders may simultaneously face unrealized losses and funding rate burdens. In particular, for positions using high leverage, even small price movements can lead to forced liquidation.

Conversely, a positive funding rate does not necessarily mean a price decline will follow. In strong uptrends, positive funding rates can persist for extended periods. Therefore, funding rates should be examined together with open interest, spot trading volume, and price movements.

While both Bitcoin and Ethereum show a preference for long positions, Ethereum is recording relatively higher funding rates and a higher long account share, drawing attention to whether volatility will expand going forward.

[Some AI assistance was used in producing this article. This does not recommend the purchase or sale of any specific asset; investment decisions and responsibilities rest with the investor.]