BlockBeats news, April 14: According to Coinglass data, as Bitcoin rose to $74,000 today, funding rates on major CEXs and DEXs indicate a significant weakening of bearish sentiment, with rates largely returning to neutral levels, as shown in the attached chart.
BlockBeats Note: Funding rate is a fee set by cryptocurrency trading platforms to maintain alignment between contract prices and the prices of underlying assets, typically applicable to perpetual contracts. It is a mechanism for the exchange of funds between long and short traders; the platform does not collect this fee, but rather uses it to adjust traders’ costs or returns on holding contracts, ensuring that contract prices remain close to those of the underlying assets.
When the funding rate is 0.01%, it indicates the baseline rate. When the funding rate exceeds 0.01%, it suggests the market is generally bullish. When the funding rate is below 0.005%, it suggests the market is generally bearish.