Bitcoin Bounces Nearly 20% from Low, On-chain Funding Rate Indicates Bearish Sentiment Persisting

BlockBeats News, February 7th, according to Coinglass data, despite a nearly 20% bounce from Bitcoin's daily low, touching $71,751 at one point, current mainstream CEX and DEX funding rates indicate that the market remains bearish, as shown in the specific funding rates in the attached image.

BlockBeats Note: Funding rates are the rates set by cryptocurrency exchanges to maintain balance between the contract price and the underlying asset price, usually applicable to perpetual contracts. It is a mechanism for fund exchanges 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 above 0.01%, it indicates a generally bullish market. When the funding rate is below 0.005%, it indicates a generally bearish market.