BlockBeats news: On January 5, according to Coinglass data, after a recent rebound in the crypto market, the funding rates of major CEX and DEX platforms currently indicate that the market remains universally bearish on altcoins, while Bitcoin maintains a neutral rate. The funding rates of major tokens are shown in the attached image.
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.