Has market sentiment flipped overnight? Funding rates turn bearish, beware of stepping on landmines!
As of May 3rd data, whether on CEX or DEX, the funding rates for mainstream cryptocurrencies have generally turned bearish, indicating an overall pessimistic market sentiment. The attached chart directly shows the current state of funding rates.
A brief explanation: Funding rates are a mechanism used by trading platforms to balance contract and spot prices, unrelated to the trading platform itself, serving as a 'toll' between the long and short positions. A rate greater than 0.01% is bullish, while less than 0.005% indicates a generally bearish market.
Currently, this wave has shifted the market from bullish to bearish mode; pay attention to risk control, don’t just look at the K-line without considering funding rates, be careful of being hit by the market reversal!
