• Bitcoin perpetual swaps funding rates have rallied to multi-year highs on Binance and Bybit.
• The Crypto Fear & Greed Index showed that the market is in a state of extreme greed.

Bitcoin [BTC] borrowing costs on leading cryptocurrency exchanges like Binance and Bybit have reached their highest point since 2021, IntoTheBlock noted in a recent post on X (formerly Twitter). This indicates a surge in leveraged trading.

According to the on-chain data provider, on 14th March, BTC perpetual swaps funding rates on Binance and Bybit recorded highs of  0.06% and 0.09%, respectively.

High Leverage equals high funding rates 

Perpetual swaps are a type of derivative contract that allows traders to speculate on the price of an asset without actually owning it.