What Do Current Funding Rates in Bitcoin and Altcoins Tell Us? Here Are the Latest Data

Question

According to the latest developments in the crypto market, a trend towards neutralization is observed in the funding rates of major cryptocurrencies traded on both decentralized (DEX) and centralized (CEX) exchanges.

According to Coinglass data, market sentiment is moving towards a more balanced level, distancing itself from extreme optimism or pessimism.

Funding rates are a mechanism applied in crypto derivatives exchanges to ensure that the price of perpetual contracts remains close to the relevant spot ( market price. These rates represent the direct transfer of funds between investors in long and short positions, and exchanges do not profit from these fees.

So how are the funding rates interpreted? Here are the basic details:

0.01: Basic )neutral( rate
%0.01: Indicates that the market generally expects a bull )rise(.
<%0.005: Indicates that the market generally expects a bear ) decline (.

The approach of these ratios to equilibrium indicates that buying and selling positions among investors have become more balanced.

Due to price fluctuations in the market, a total of 196.96 million dollars worth of positions were liquidated in the last 24 hours. This liquidation is:

131.13 million dollars long
Consisted of 65.82 million dollars from short positions.

*It is not investment advice.

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