According to the latest data from Santiment, Bitcoin traders have increasingly taken long positions following a recent market dip, while Ethereum traders are showing signs of shorting the asset after a price retracement.
This divergence in sentiment is reflected in aggregated exchange funding rates.
The report highlights that Bitcoin traders began buying the dip as BTC’s price bottomed, leading to a minor relief rally.
In contrast, Ethereum traders have demonstrated reactive behavior—going long after rallies and shorting after retracements—suggesting uncertainty and a lack of directional conviction.
Santiment’s data implies that Ethereum traders are more prone to being caught offside. The visualized funding rate spikes—green for long positioning and red for shorts—show ETH traders entering long positions at local tops and short positions near local bottoms. This reactive trading style often results in losses, especially when the broader market sentiment reverses.
In simpler terms, exchange funding rates reveal how much traders are paying to maintain leveraged positions. When rates are excessively positive, it means the majority are betting on higher prices (bullish), and when they’re negative, traders are expecting a decline (bearish). These moments often precede reversals, as overly bullish or bearish positions tend to get liquidated.
The report concludes that traders’ overconfidence—either long or short—can signal local tops or bottoms. Currently, Bitcoin appears to have stronger bullish sentiment, while Ethereum may face downside risk if the pattern of short-term greed and fear continues.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/what-traders-are-betting-on-for-btc-and-eth-according-to-this-metric/