Gate News reports that on March 20, according to Coinglass data, as Bitcoin experienced a slight decline today, the funding rates on major CEX and DEX platforms indicate that the market remains broadly bearish.
Funding rates are fees set by cryptocurrency trading platforms to maintain the balance between contract prices and the underlying asset prices, typically applicable to perpetual contracts. They serve as a mechanism for transferring funds between long and short traders; the trading platform does not charge this fee. Instead, it adjusts the cost or profit for traders holding contracts to keep the contract price close to the underlying asset price.
A funding rate of 0.01% indicates a baseline rate; when the funding rate exceeds 0.01%, it suggests a generally bullish market; when it is below 0.005%, it indicates a generally bearish market.
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