BlockBeats news: On January 19, according to Coinglass data, after several days of recent pullbacks, the crypto market dropped below $92,000 this morning. Currently, funding rates on major CEX and DEX platforms indicate that the market is broadly bearish. Bitcoin and Ethereum have already shown negative funding rates, and the bearish sentiment toward altcoins is even stronger. The funding rates for major cryptocurrencies are shown in the attached chart.
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.