On January 2nd, according to Coinglass data, after some Altcoin saw price increases today, the funding rates on major CEXs and DEXs currently show a recovery in the Altcoin market. Some platforms have seen Altcoin trading pairs return to neutral rates. However, with Bitcoin approaching the $90,000 resistance level again, the market is starting to turn bearish again, and it has not yet entered a negative rate range. This is the opposite of the situation during the previous market downturn (BTC and ETH had neutral rates, while Altcoin had negative rates across the board). Specific funding rates for major cryptocurrencies are shown in the attached chart.
BlockBeats Note: Funding rates are fees set by cryptocurrency trading platforms to maintain a balance between contract prices and the price of the underlying asset, typically applicable to perpetual contracts. It is a mechanism for exchanging funds between long and short traders; the trading platform does not charge this fee. It is used to adjust the cost or profit of traders holding contracts to keep the contract price close to the price of the underlying asset.
A funding rate of 0.01% represents the benchmark rate. A funding rate greater than 0.01% indicates a generally bullish market sentiment. A funding rate less than 0.005% indicates a generally bearish market sentiment.
