Mainstream Cryptocurrencies Experience Another Downturn, Exchange Funding Rates Turn Sharply Bearish

BlockBeats News, January 21, Evening Today, mainstream cryptocurrencies once again fell, with Bitcoin briefly falling by over 0.5%, approaching the previous low, while Ethereum fell by over 1%, dangerously holding above $2900.

According to Coinglass data, the current mainstream CEX and DEX funding rates show a market-wide bearish sentiment towards BTC, ETH, and SOL. On Binance, the ETH and SOL funding rates have turned negative.

BlockBeats Note: Funding Rate is a fee set by cryptocurrency trading platforms to maintain the balance between the contract price and the underlying asset price, usually applicable to perpetual contracts. It is a funding exchange mechanism between long and short traders, and the trading platform does not charge this fee but uses it 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.