BlockBeats News: On February 3, according to Coinglass data, after Bitcoin fell below $75,000 yesterday, it has rebounded above $78,000 today. Funding rate data indicates the market is currently strongly bearish, with multiple exchanges reporting negative Bitcoin funding rates, meaning short positions are now paying long positions to maintain their positions. Ethereum's negative funding rates are significantly higher than those of BTC, indicating a more pronounced bearish sentiment toward Ethereum.
BlockBeats Note: Funding rates are fees set by cryptocurrency exchanges to maintain balance between the price of a contract and the price of the underlying asset, typically applied to perpetual contracts. It is a mechanism for the exchange of funds between long and short traders, and the exchange itself does not collect this fee. It is used to adjust the cost or profit of holding a contract for traders, in order to keep the contract price close to the price of the underlying asset.
When the funding rate is 0.01%, it indicates the benchmark rate. When the funding rate is higher than 0.01%, it suggests that the market is generally bullish. When the funding rate is lower than 0.005%, it suggests that the market is generally bearish.