BlockBeats news: On February 2, according to Coinglass data, as Bitcoin dropped below $75,000 at noon today and also fell below the average cost price of Strategy positions, panic spread across the market. Currently, funding rates on major CEX and DEX platforms indicate that the market is highly bearish.The funding rates for BTC, ETH, and SOL are all negative..It is worth noting that the bearish sentiment in the market toward altcoins is not as strong as that toward major cryptocurrencies; currently, the funding rates for most major altcoins are still not positive.The specific funding rate is shown in the attached figure.
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.