Update (January 24): Per Coinglass data, Bitcoin has failed to break above $90,000 and is currently trading at $89,627. Currently, funding rates across major centralized exchanges (CEX) and decentralized exchanges (DEX) show a slight easing of bearish sentiment toward BTC and SOL, with some platforms returning to neutral rates. However, large-scale bearish sentiment still lingers for altcoins, as evidenced by the funding rates of specific major coins in the attached image. BlockBeats Note: The Funding Rate is a fee set by cryptocurrency exchanges to align contract prices with underlying asset prices, primarily used for perpetual contracts. It’s a funding transfer mechanism between long and short traders — exchanges do not collect this fee themselves. Its purpose is to adjust the cost or profit for traders holding positions, ensuring contract prices stay close to the underlying asset’s value. A Funding Rate of 0.01% serves as the baseline. Rates above 0.01% indicate generally bullish market sentiment, while rates below 0.005% signal generally bearish sentiment.
