Crypto Exchange Funding Rates Show Divergence Amidst Market Sentiment

New data from Coinglass reveals a divergence in funding rates across major cryptocurrency exchanges, highlighting contrasting market sentiments. These rates, utilized by platforms to maintain equilibrium between contract prices and underlying asset values, typically applied to perpetual contracts, facilitate fund exchange between long and short traders without fees. They ensure contract prices align with asset prices. A funding rate of 0.01% is considered the benchmark, while a rate exceeding 0.01% generally suggests bullish market sentiment. Conversely, a rate below 0.005% often signals bearish market sentiments.