Current Mainstream CEX and DEX Funding Rates Indicate Significant Decrease in Market Short Sentiment
On May 4, according to Coinglass data, as Bitcoin strongly broke through the $80,000 mark, current mainstream CEX and DEX funding rates show a significant decrease in market short sentiment, as illustrated in the attached chart. Note from BlockBeats: The funding rate is a fee set by cryptocurrency trading platforms to maintain the balance between contract prices and the prices of the underlying assets, typically applicable to perpetual contracts. It serves as a mechanism for capital exchange between long and short traders, and the trading platform does not charge this fee. Instead, it adjusts the cost or profit of traders holding contracts to keep the contract price close to the underlying asset price. A funding rate of 0.01% indicates the benchmark rate. When the funding rate is greater than 0.01%, it represents a generally bullish market. When the funding rate is less than 0.005%, it indicates a generally bearish market.
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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