On August 1, according to Coinglass data, as Bitcoin’s volatility weakened, the current funding rates shown by major CEXs and DEXs indicate that the bearish sentiment in the market has eased. The specific funding rates are shown in the accompanying chart.
Funding rate is a fee set by cryptocurrency trading platforms to maintain balance between the contract price and the price of the underlying asset, usually applied to perpetual contracts. It is a funding exchange mechanism between long and short traders. The trading platform does not collect this fee; instead, it is used to adjust traders’ costs or gains for holding contracts, so that the contract price stays close to the underlying asset price.
When the funding rate is 0.01%, it indicates the benchmark rate. When the funding rate is greater than 0.01%, it generally means the market is bullish. When the funding rate is less than 0.005%, it generally means the market is bearish.
Funding rate is a fee set by cryptocurrency trading platforms to maintain balance between the contract price and the price of the underlying asset, usually applied to perpetual contracts. It is a funding exchange mechanism between long and short traders. The trading platform does not collect this fee; instead, it is used to adjust traders’ costs or gains for holding contracts, so that the contract price stays close to the underlying asset price.
When the funding rate is 0.01%, it indicates the benchmark rate. When the funding rate is greater than 0.01%, it generally means the market is bullish. When the funding rate is less than 0.005%, it generally means the market is bearish.
