Current mainstream CEX and DEX funding rate data displays a widespread market shift to bearish sentiment

BlockBeats News, January 19, according to Coinglass data, after experiencing a pullback in the crypto market in recent days, it briefly dropped below $92,000 this morning. Currently, mainstream CEX and DEX funding rates show that the market has fully tilted towards a bearish sentiment, with Bitcoin and Ethereum experiencing negative rates. The bearish sentiment towards altcoins is even stronger. Specific funding rates for mainstream currencies are shown in the attached image.

BlockBeats Note: Funding rates are rates set by cryptocurrency exchanges to maintain the balance between the contract price and the underlying asset price, usually applicable to perpetual contracts. It is a fund exchange mechanism between long and short traders, and 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 underlying asset price.

When the funding rate is 0.01%, it represents the baseline rate. When the funding rate is greater than 0.01%, it indicates a generally bullish market. When the funding rate is less than 0.005%, it indicates a generally bearish market.