"Funding rates turn weaker amid Bitcoin plunge…market tilts broadly toward 'shorts'"
Summary
- It reported that Bitcoin (BTC) prices have plunged in the short term, rapidly cooling investor sentiment in the crypto-asset derivatives market.
- It said that, according to Coinglass, funding rates across major CEX and DEX venues have generally stayed low, indicating the market is reflecting a bearish outlook.
- It reported that analysis points to a dominance of short (sell) positions as funding rates decline across major exchanges.
Forecast Trend Report by Period
Bitcoin (BTC) prices have slid sharply in the short term, rapidly dampening investor sentiment in the crypto-asset (cryptocurrency) derivatives market.
According to BlockBeats, a crypto-focused media outlet, funding rates across major centralized exchanges (CEX) and decentralized exchanges (DEX), based on on-chain data platform Coinglass, have generally remained at low levels, suggesting the market is pricing in a bearish outlook. The market is seeing funding rates fall across major venues, with analysis pointing to a dominance of short (sell) positions.
Meanwhile, funding rates are fees set in perpetual futures markets to narrow the gap between contract prices and spot prices, and they are exchanged periodically between long (buy) and short (sell) investors—not by the exchange.
In perpetual futures markets, positive funding rates indicate bullish sentiment, while negative funding rates signal bearish sentiment.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
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