Editor's PiCK
"Virtual Asset Derivatives Market, Funding Rate Approaches 0.01%... Returning to Neutral Trend"
Summary
- It was reported that the funding rate in the virtual asset derivatives market remains at a neutral level, around 0.01%.
- With the funding rate forming near the baseline, it has been assessed that the market has cooled down from an overheated state.
- The current position of the funding rate near the baseline is seen as a sign that the position imbalance phenomenon is easing.
The funding rate in the virtual asset (cryptocurrency) derivatives market has returned to a neutral level.
On the 19th, the specialized virtual asset media outlet BlockBeats, citing data from the on-chain data platform CoinGlass, reported that as of this day, the funding rates at major centralized exchanges (CEX) and decentralized exchanges (DEX) were maintaining the baseline at around 0.01%, indicating that the market is showing a neutral trend.
As the funding rate, a representative indicator of bullish or bearish sentiment in the perpetual futures market, forms near the baseline, it is interpreted that the market has cooled down from an overheated state. Generally, when the funding rate exceeds the baseline of 0.01%, it suggests a bullish market with long positions prevailing, while a drop below 0.005% indicates a bearish market where short positions are dominant.
The media added, "When the funding rate is located near the baseline as it is now, it can be interpreted as a signal that the overall position imbalance in the market is easing."
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.!["Will AI take our jobs?" Fear spreads…market rattled by a plunge in shares [New York Market Briefing]](https://media.bloomingbit.io/PROD/news/874408f1-9479-48bb-a255-59db87b321bd.webp?w=250)
