ChainThink reports that on March 13, according to Coinglass data, the crypto market experienced a rebound this morning, with Bitcoin rising to $72,000 and Ethereum climbing to $2,148. The bearish sentiment reflected in current funding rates across major CEXs and DEXs has eased, as funding rates for various trading pairs have largely returned to neutral levels (previously all negative), as shown in the attached chart for major cryptocurrencies.
ChainThink Note: Funding rates are fees set by cryptocurrency trading platforms to maintain alignment between contract prices and the prices of underlying assets, typically applicable to perpetual contracts. They serve as a mechanism for exchanging funds between long and short traders; the platform does not collect these fees, but rather uses them to adjust traders’ costs or returns on their positions, helping to keep contract prices 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 reflects widespread market bullish sentiment. When the funding rate is below 0.005%, it reflects widespread market bearish sentiment.