Funding Rates at Major Exchanges Return to Neutral-to-Bearish Territory
BIBIBI
AT A GLANCE
BlockBeats stated that September 29 mainstream CEX、DEX funding rates have returned to neutral-to-bearish territory.
Article
Current mainstream CEX、DEX Funding rates indicate that the market has returned to neutral-to-bearish territory.
BlockBeats reported:September 29, according to Coinglass data, as Bitcoin saw a modest rebound today, current mainstream CEX、DEX funding rates indicate that the market has returned to neutral-to-bearish territory. 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 fund exchanges between long and short traders; trading platforms do not collect this fee. They are used to adjust the cost or return of holding contracts so that contract prices remain close to 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.
Original link https://m.theblockbeats.info/flash/369550
Key points
01
Citing Coinglass data, BlockBeats stated that Bitcoin saw a modest rebound on the day.
02
Data show that current mainstream CEX、DEX funding rates indicate that the market has returned to neutral-to-bearish territory.
03
Funding rates are used to adjust perpetual contract prices so that they remain close to underlying asset prices.
04
The original article states that a funding rate of 0.01%is the benchmark rate; a rate greater than 0.01%indicates that the market is generally bullish, while a rate below 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 are a mechanism for fund exchanges between long and short traders in perpetual contracts and are not collected by trading platforms. Funding-rate levels can be used to gauge bullish or bearish sentiment in the contract market.
Why it matters to readers
The return of funding rates to neutral-to-bearish territory indicates that the bullish bias in the contract market described by the data has weakened, but the evidence does not provide specific platforms or funding-rate values.
Beginners can understand funding rates as an indicator of the periodic cost or return of holding perpetual contracts, and assess whether the market is bullish or bearish in conjunction with specific values.
Risks and unknowns
The evidence does not provide the specific funding-rate values shown in the attached chart.
The evidence does not identify specific exchanges, platforms, or contracts.
Funding rates at a single point in time alone cannot confirm Bitcoin's subsequent price direction.
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Related concepts
Funding Rate
This term is not in the glossary yet. Browse related concepts in the glossary.
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.
