On January 21, major cryptocurrencies fell again this evening. Bitcoin briefly dropped more than 0.5%, approaching its previous low, while Ethereum fell more than 1%, barely holding above $2,900.
According to Coinglass data, current funding rates on major CEXs and DEXs indicate a generally bearish market sentiment towards BTC, ETH, and SOL. Funding rates for ETH and SOL on Binance have already turned negative.
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.
