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The funding rate on mainstream trading platforms indicates a clear bearish market.
[Coin World] On September 23, according to data from the platform, the funding rate of major trading platforms shows that the market has clearly leaned towards bearish sentiment, with specific funding rates as shown in the figure.
The funding rate is the rate 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 mechanism for the exchange of funds between long and short traders, and the trading platform does not charge this fee, which is used 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 indicates the benchmark rate. When the funding rate is greater than 0.01%, it represents a generally bullish market. When the funding rate is less than 0.005%, it represents a generally bearish market.