Crypto market rebounds, funding rates show bearish sentiment on ETH is easing, but BTC funding rates remain negative on multiple platforms
BlockBeats News, March 31, according to Coinglass data, the crypto market has rebounded. Bitcoin is currently trading at $68,171.00, up 2.34% in 24 hours; Ethereum is currently trading at $2,079.76, up 3.53% in 24 hours. The current funding rates across major CEX and DEX platforms show that bearish sentiment towards ETH has eased compared to before, while BTC lags behind, with negative BTC funding rates persisting on several platforms, resulting in a clear divergence between the two.
Specifically, ETH funding rates on multiple platforms have returned to the +0.0100% benchmark level, with the overall bearish signal significantly narrowing from previous levels. As for BTC, funding rates on several platforms, including a certain exchange, remain in negative territory, with short sellers continuing to pay fees to longs to maintain their positions; although some platforms have turned positive, all remain below the 0.005% threshold and have not yet returned to neutral. Specific funding rates for major cryptocurrencies are shown in the attached chart.
BlockBeats note: Funding rates are fees set by cryptocurrency trading platforms to maintain balance between contract prices and the underlying asset prices, and are typically applied to perpetual contracts. It is a capital exchange mechanism between long and short traders. The trading platform does not collect this fee; it is used to adjust the cost or revenue of holding a contract to keep contract prices close to underlying asset prices.
When the funding rate is 0.01%, it indicates the benchmark rate. When the funding rate is greater than 0.01%, it signifies a generally bullish market. When the funding rate is less than 0.005%, it indicates a generally bearish market.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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