Cryptocurrency Market Maintains Neutral Position Amid Current Funding Rates.
According to BlockBeats, data from Coinglass indicates that the current funding rates on major centralized and decentralized exchanges (CEX and DEX) suggest that the cryptocurrency market remains in a neutral position. The funding rates for major cryptocurrencies are detailed in the accompanying data.
Funding rates are fees set by cryptocurrency trading platforms to maintain a balance between the prices of contracts and the prices of underlying assets, typically applied to perpetual contracts. This mechanism facilitates the exchange of funds between long and short traders, without the trading platform collecting these fees. The goal is to adjust the cost or profit of holding contracts, ensuring that the prices of contracts remain close to the prices of the underlying assets.
A funding rate of 0.01% is considered the benchmark rate. When the funding rate exceeds 0.01%, it indicates a generally optimistic market sentiment. On the other hand, a funding rate below 0.005% suggests a pessimistic market sentiment.
