COINOTAG News, citing Coinglass data as of December 24, shows that the funding rates across leading CEX and DEX venues remain muted, signaling a cautious stance in the crypto market. While readings vary by asset, the broader signal points to a bearish tilt and a preference for hedging over leverage.
The funding rate is the periodic fee that helps align the price of perpetual contracts with the underlying spot price, transferring value between long and short positions on the exchange. A baseline near 0.01% denotes neutrality; readings above this level suggest a bullish bias, while readings below about 0.005% reflect a bearish stance and stronger short demand.
Traders should weave funding rate signals into risk management, balancing hedging costs with liquidity and price action to gauge potential near-term moves in the global crypto market.
Source: https://en.coinotag.com/breakingnews/bitcoin-bearish-outlook-persists-as-mainstream-cex-dex-funding-rates-stay-low-coinglass-data-dec-24
