According to the latest developments in the cryptocurrency market, a trend in neutralization has been observed in the funding rates of major cryptocurrencies traded in both decentralized (DEX) and concentrated (CEX) exchanges.
Market sentiment has shifted from excessive optimism and pessimism towards a more balanced level, according to Coinglass data.
Funding rates are mechanisms implemented to ensure that the price of permanent futures contracts for cryptocurrency derivative exchanges remains close to the relevant (actual) market price. These fees represent the direct transfer of funds between long and short investors, and the exchange has not earned from these fees.
So, how is funding rates interpreted, here is the basic information.
- 0.01: Basic (neutral) ratio
- >0.01%: indicates that the market is generally in bull’s expectations (ascendance)
- <0.005%: indicates that the market is generally at bear's expectations (decrease)
The fact that these ratios are approaching equilibrium indicates that the buying and selling positions among investors are more balanced.
Market price fluctuations have cleared positions worth a total of $109.96 million over the past 24 hours. This liquidation:
- $131.13 million
- The $65.82 million of this consisted of short positions.
*This is not investment advice.