Major CEX、DEX Funding rates indicate weakening bearish market sentiment
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AT A GLANCE
As Bitcoin strengthened slightly, funding rates for major CEX、DEX indicate weakening bearish market sentiment.
Article
Major cryptocurrencies CEX、DEX Funding rates indicate weakening bearish market sentiment
BlockBeats reported,October 19, according to Coinglass data, as Bitcoin strengthened slightly, current major CEX、DEX funding rates indicate weakening bearish market sentiment; specific funding rates are shown in the attached chart.
BlockBeats note: Funding rates are rates set by cryptocurrency trading platforms to maintain a balance between contract prices and underlying asset prices, typically for perpetual contracts. They are a mechanism for the exchange of funds between long and short traders; trading platforms do not charge this fee. They adjust the cost or return of traders holding contracts to keep contract prices close to underlying asset prices.
When the funding rate is 0.01%, it represents the base 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.
Original link https://m.theblockbeats.info/flash/372520
Key points
01
BlockBeats said,October 19, according to Coinglass data, as Bitcoin strengthened slightly, funding rates for major CEX、DEX indicate weakening bearish market sentiment.
02
The original article stated that funding rates typically apply to perpetual contracts and are a mechanism for the exchange of funds between long and short traders; trading platforms do not charge this fee.
03
The original article stated that a funding rate of 0.01%represents the base rate; a rate greater than 0.01%indicates that the market is generally bullish; and a rate less than 0.005%indicates that the market is generally bearish.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
Funding rates affect the costs or returns of holders of perpetual contracts and are used to keep contract prices close to underlying asset prices. The report considers the bearish sentiment reflected in current funding rates to be weakening, but the text does not provide specific figures for each platform.
Why it matters to readers
Funding rates can be used to observe the overall inclination of long and short traders in the contract market; this change indicates that bearish market sentiment has weakened.
Beginners can use funding rates as one indicator for observing market sentiment, but “weakening bearish sentiment” alone cannot confirm that the market has turned generally bullish.
Risks and unknowns
The text does not list the specific funding rates for major CEX、DEX; the referenced chart is also not included in the source text.
The text alone cannot confirm which trading platforms were included in the statistics.
The report only states that Bitcoin strengthened slightly and does not provide specific price changes.
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Related concepts
Funding rate
A fee paid periodically between long and short positions to help keep the price of a perpetual contract close to the price of the underlying asset.
A derivative contract with no expiration date, designed for continuous holding, whose funding rate mechanism helps keep its price close to that of the underlying asset.
