According to the latest developments in the cryptocurrency market, a trend towards neutralization is observed in the funding rates of major cryptocurrencies traded on both decentralized (DEX) and centralized (CEX) exchanges.
Market sentiment is moving away from excessive optimism or pessimism and toward a more balanced level, according to Coinglass data.
Funding rates are a mechanism implemented to ensure that the price of perpetual futures contracts on cryptocurrency derivative exchanges remains close to the relevant spot (real) market price. These rates represent the direct transfer of funds between long and short investors, and exchanges do not earn from these fees.
So how are funding rates interpreted, here is the basic information:
- 0.01: Basic (neutral) ratio
- >%0.01: Piyasanın genel olarak boğa (yükseliş) beklentisinde olduğunu gösterir
- <%0.005: Piyasanın genel olarak ayı (düşüş) beklentisinde olduğunu gösterir
The fact that these ratios are approaching equilibrium indicates that buy and sell positions among investors are becoming more balanced.
Due to price fluctuations in the market, a total of $196.96 million worth of positions were liquidated in the last 24 hours. This liquidation:
- $131.13 million long
- $65.82 million of this was made up of short positions.
*This is not investment advice.
