Funding rates across major centralized and decentralized exchanges have returned to neutral territory, according to Coinglass data cited by BlockBeats on Sept. 22. The reading came after Bitcoin broke above $86,000 and then moved into a period of consolidation. The outlet said the current funding-rate picture across mainstream CEX and DEX venues points to a more balanced derivatives market rather than a clearly bullish or bearish one.
BlockBeats also included a note explaining how funding rates work in crypto perpetual futures. The mechanism is used to keep contract prices close to the underlying asset price, with payments exchanged directly between long and short traders rather than collected by the exchange. In the framework cited by the report, a 0.01% funding rate represents the baseline level, a rate above 0.01% usually signals a broadly bullish market bias, and a rate below 0.005% usually signals a broadly bearish bias.
Funding rates across major centralized exchanges and decentralized exchanges have moved back into neutral territory, according to Coinglass data cited by BlockBeats on Sept. 22. The shift came after Bitcoin broke above $86,000 and then held in a choppy range. BlockBeats said the detailed funding-rate readings were shown in the attached chart.
How funding rates work
BlockBeats said funding rates are used by crypto trading platforms to keep perpetual contract prices aligned with the price of the underlying asset. The mechanism usually applies to perpetual futures and works as a transfer of funds between long and short traders. The platform itself does not collect the fee. Instead, the rate changes traders’ holding costs or returns so contract prices stay close to spot prices.
Under the explanation included by BlockBeats, a funding rate of 0.01% is treated as the baseline. A rate above 0.01% usually indicates that the market is broadly bullish, while a rate below 0.005% usually indicates that the market is broadly bearish.
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