Cryptocurrency Market Rebounds, Funding Rate Indicates Bearish Sentiment Still Prevails, ETH Stands Out

BlockBeats News, March 24th, according to Coinglass data, Bitcoin is currently trading at $70,529.30, with a 24-hour increase of 3.25%; Ethereum is currently trading at $2,138.27, with a 24-hour increase of 3.32%. At the time of the crypto market rebound, the funding rates of mainstream CEXs and DEXs still show persistent bearish signals, with ETH being particularly notable.

Specifically, the ETH funding rate on Binance and almost all other mainstream platforms has recorded a negative value, with shorts continuing to pay fees to longs to maintain their positions, indicating that the sentiment in the futures market is significantly more bearish than in the spot market. As for BTC, although the funding rates on major platforms like Binance are positive, they are all below the 0.005% threshold, with some platforms still in negative territory. The overall situation has not yet returned to neutral. The funding rates for specific mainstream coins are as 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 used in perpetual contracts. It is a mechanism for fund exchange 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.