Current funding rates on major CEXs and DEXs indicate that the market is shifting back towards a bearish outlook.
TL;DR
After a recent rebound, funding rates on major crypto exchanges indicate a shift back to bearish sentiment, with rates below 0.005% signaling this trend for Bitcoin and altcoins.
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On January 6, according to Coinglass data, after the recent rebound in the crypto market, the funding rates of major CEXs and DEXs currently show that the market is starting to lean bearish again (including Bitcoin and Altcoin). The specific funding rates of major cryptocurrencies are shown in the attached figure.
BlockBeats Note: Funding rates are fees set by cryptocurrency trading platforms to maintain a balance between contract prices and the price of the underlying asset, typically applicable to perpetual contracts. It is a mechanism for exchanging funds between long and short traders; the trading platform does not charge this fee. It is used to adjust the cost or profit of traders holding contracts to keep the contract price close to the price of the underlying asset.
A funding rate of 0.01% represents the benchmark rate. A funding rate greater than 0.01% indicates a generally bullish market sentiment. A funding rate less than 0.005% indicates a generally bearish market sentiment.