BlockBeats News, February 3rd, according to Coinglass data, Bitcoin fell below $75,000 yesterday and has rebounded to above $78,000 today. Funding rate data shows that the current market is strongly bearish, with the Bitcoin funding rate on multiple exchanges turning negative, indicating that shorts are paying fees to longs to maintain their positions. Ethereum’s negative funding rate is significantly higher than BTC’s, demonstrating that the market sentiment towards Ethereum is more pessimistic.
BlockBeats Note: Funding Rate is a fee set by cryptocurrency trading platforms to maintain the balance between the contract price and the underlying asset price, usually applicable to perpetual contracts. It is a funding exchange mechanism between long and short traders, with the trading platform not collecting this fee but using it to adjust the cost or profit of traders holding contracts to keep the contract price close to the underlying asset price.
When the funding rate is 0.01%, it represents the baseline rate. When the funding rate is above 0.01%, it indicates a generally bullish market. When the funding rate is below 0.005%, it indicates a generally bearish market.
