The current mainstream CEX and DEX funding rate shows a market shift towards a downtrend, diverging from the price increase

BlockBeats News, March 17th, according to Coinglass data, Bitcoin is currently trading at $75,480, a 24-hour increase of 3.67%; Ethereum is currently trading at $2,353.4, a 24-hour increase of 7.68%. The current mainstream CEX and DEX funding rates indicate a shift to a bearish market, deviating from the price increase.

Specifically, the BTC funding rate on various major platforms like Binance has dropped to below the 0.005% threshold, with several platforms turning negative. The bearish signal for ETH is even more widespread, with Binance rates below the 0.005% threshold and rates negative on multiple platforms. Shorts on these platforms continue to pay fees to longs to maintain their positions. The specific funding rates for mainstream cryptocurrencies are shown in the attached image.

BlockBeats Note: Funding rates are rates set by cryptocurrency exchanges to maintain balance between the contract price and the underlying asset price, typically used in 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 benchmark 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.