BlockBeats reported on Oct. 8 that funding rates across major centralized and decentralized exchanges had shifted back to a bearish reading, according to Coinglass data. The change came as Bitcoin continued to fall and slipped below $81,000, while Ether lost the $2,500 level. The report pointed readers to an accompanying chart for the detailed funding-rate readings.
The outlet also included a brief explanation of how funding rates work in crypto derivatives markets. Funding rates are commonly used in perpetual futures to keep contract prices close to the underlying asset. The payment is exchanged between long and short traders rather than collected by the trading venue itself. In the framework cited by BlockBeats, a 0.01% funding rate is treated as the baseline. A rate above 0.01% usually points to a broadly bullish market stance, while a rate below 0.005% is generally read as bearish.
Funding rates across major centralized exchanges and decentralized exchanges have turned bearish again, according to Coinglass data cited by BlockBeats on Oct. 8. The shift came as Bitcoin kept falling and dropped below $81,000, while Ether lost the $2,500 level. Detailed funding-rate readings were shown in the accompanying chart.
How BlockBeats described funding rates
BlockBeats said funding rates are used by crypto trading platforms to help keep perpetual contract prices aligned with the prices of the underlying assets. The mechanism usually applies to perpetual futures.
The payment is exchanged between long and short traders, and the platform does not collect the fee. Its purpose is to adjust the cost or return of holding a contract so that the contract price stays close to the spot reference.
Under the thresholds cited in the report, a funding rate of 0.01% represents the baseline rate. A reading above 0.01% typically signals a broadly bullish market, while a reading below 0.005% typically signals a broadly bearish one.
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