The crypto market moved lower on July 17, with HTX market data showing Bitcoin at $62,970.53, down 1.76% over the past 24 hours, and Ether at $1,832.07, down 2.81%. Fresh data from CoinGlass pointed to weaker derivatives sentiment for both major assets. Bitcoin’s open-interest-weighted and volume-weighted funding rates stood at 0.0041% and 0.0030%, while Ether’s two weighted funding rates both came in at 0.0045%. All of those readings were below the 0.005% threshold cited in the report as a bearish zone. BlockBeats said the figures showed clearly bearish sentiment across BTC and ETH overall, though Ether’s weighted rates were slightly higher than Bitcoin’s, suggesting relatively stronger sentiment in ETH. The report also noted that funding rates are used by crypto trading platforms to keep perpetual futures prices aligned with spot prices. The fee is exchanged between long and short traders rather than collected by the platform. According to the note, a 0.01% funding rate is considered the baseline, readings above 0.01% suggest broadly bullish sentiment, and levels below 0.005% indicate a broadly bearish market stance.
Crypto prices moved lower on July 17. HTX market data showed Bitcoin trading at $62,970.53, down 1.76% in 24 hours, while Ether was quoted at $1,832.07, down 2.81% over the same period.
Funding rates signal bearish sentiment
According to the latest CoinGlass data, Bitcoin’s open-interest-weighted funding rate was 0.0041%, and its volume-weighted funding rate was 0.0030%. For Ether, both weighted funding rates were 0.0045%.
All of those readings were below the 0.005% bearish threshold cited in the report. BlockBeats said the data showed clearly bearish sentiment across BTC and ETH overall, with Ether posting slightly higher weighted funding rates and relatively stronger market sentiment than Bitcoin.
How the funding rate benchmark works
Funding rates are set by crypto trading platforms to keep perpetual futures prices aligned with the underlying asset price. The payment is exchanged between long and short traders, and the platform does not collect the fee.
BlockBeats noted that a funding rate of 0.01% is considered the baseline. A reading above 0.01% suggests the market is broadly bullish, while a level below 0.005% points to broadly bearish sentiment.
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