BlockBeats news: On January 14, according to data from Coinglass, after a broad recovery in the cryptocurrency market this morning, funding rates on major centralized and decentralized exchanges have largely returned to neutral levels. However, the funding rates for BTC, HYPE, BCH, and ZEC indicate that the market still leans bearish. 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.