Divergence in Funding Rates Observed Across Major Cryptocurrency Exchanges
reports that recent data from Coin
shows a divergence in funding rates across leading centralized and decentralized cryptocurrency exchanges, signaling mixed market sentiment—ranging from neutral to bearish. Funding rates are used in perpetual contracts to align contract prices with the underlying asset values. They facilitate payment between long and short positions, without any platform-imposed fees, helping maintain price parity. A funding rate of 0.01% is seen as the standard. Rates above this point suggest bullish sentiment, while those below 0.005% point to a bearish outlook.
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