BlockBeats news: On January 15, according to Coinglass data, after the recent correction, the crypto market has returned to a neutral state. However, as Bitcoin has once again risen to the key level of $97,000, funding rates on major CEXs and DEXs now indicate the market is once again attempting to "test the top and short." On major platforms, BTC funding rates have turned bearish, and negative funding rates have reappeared for altcoins. The funding rates for major cryptocurrencies 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.