Exchange platform funding rates indicate a highly bearish market, with all major cryptocurrencies showing negative values.
BlockBeats News, February 2, according to Coinglass data, as Bitcoin fell below $75,000 at noon today, simultaneously dropping below the Strategy holding cost price, market panic has spread. Currently, funding rates on major CEX and DEX platforms indicate that the market is highly bearish, with BTC, ETH, and SOL funding rates all negative. It is worth noting that the bearish sentiment towards altcoins is not as strong as that for major coins, as the funding rates for most major altcoins are still not negative. Specific funding rates are shown in the attached chart.
BlockBeats Note: Funding rates are fees set by cryptocurrency trading platforms to maintain the balance between contract prices and the underlying asset prices, typically applied to perpetual contracts. It is a capital exchange mechanism between long and short traders; the trading platform does not charge this fee. It is used to adjust the cost or profit of holding contracts, so that contract prices remain close to the underlying asset prices.
When the funding rate is 0.01%, it represents the benchmark rate. When the funding rate is greater than 0.01%, it indicates that the market is generally bullish. When the funding rate is less than 0.005%, it indicates that the market is generally bearish.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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