Current funding rates on major CEXs and DEXs indicate that the market is re-entering the "top-picking and short" strategy.
TL;DR
After a correction, crypto markets turned neutral but Bitcoin's rise to $97,000 has led to bearish funding rates on CEXs and DEXs, indicating a return to short-selling strategies.
Tags
On January 15th, according to Coinglass data, after the recent correction, the crypto market returned to neutral yesterday. However, with Bitcoin rising back to the key level of $97,000, the funding rates of mainstream CEXs and DEXs show that the market is trying to "short the market" again. The funding rates for BTC on mainstream platforms have turned bearish, and Altcoin have also seen negative rates again. The specific funding rates for mainstream cryptocurrencies are shown in the attached chart.
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.