BlockBeats reported on Sept. 28, citing data from Coinglass, that funding rates across major centralized and decentralized exchanges are showing a noticeably stronger bearish bias as Bitcoin weakens again. The report pointed to an accompanying chart for the specific readings.
It also included a brief note explaining how funding works in crypto perpetual futures. Funding rates are designed to keep contract prices aligned with the underlying asset and function as a payment mechanism between long and short traders, rather than a fee collected by the exchange. In the thresholds cited by BlockBeats, 0.01% is treated as the baseline rate, readings above 0.01% generally indicate a bullish market stance, and readings below 0.005% are typically read as a bearish signal.
Funding rates across major centralized exchanges and decentralized exchanges are showing a much stronger bearish bias as Bitcoin weakens again, according to Coinglass data cited by BlockBeats on Sept. 28. The report said the detailed funding rate readings were shown in the attached chart.
How BlockBeats framed the funding-rate thresholds
BlockBeats said funding rates are used by crypto trading platforms to help keep perpetual contract prices in line with the underlying asset. In practice, they work as a transfer mechanism between long and short traders, and the exchange itself does not collect the payment.
Under the explanation included in the report, a funding rate of 0.01% is considered the baseline. A rate above 0.01% points to a broadly bullish market stance, while a rate below 0.005% signals that the market is generally bearish.
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