The CEX and DEX funding rates have turned negative and continue to fall.
The funding rate of BTC on Binance was -0.0094% while on dYdX was -0.0006%.
Bitcoin was trading at $58,035.63, up 2.6% in the past 24 hours.
Funding rates across major centralized and decentralized crypto exchanges have taken a nosedive, suggesting the digital asset space could face another crash soon as capital inflows slow down.
Data from Coinglass reveals that in the past 24 hours, the funding rate of Bitcoin on Binance was -0.0094%, while on dYdX it was -0.0006%, indicating a bearish sentiment in the perpetual swaps market. Over the last seven days, the funding rate of Bitcoin on Binance was -0.0614%, on OKX was -0.0055%, on dYdX was 0.1457%, on Bybit was 0.0636%, and on Bitget was 0.0718%.
A negative funding rate occurs when traders with short positions pay a fee to those with long positions. The reverse is true for a positive funding rate. These payments help maintain market equilibrium.
Read also: Price-to-Revenue Ratios Gain Traction in Blockchain Analysis
When funding rates are negative, investor sentiment tends to be bearish because it signals that a majority of trader…
The post Bitcoin Funding Rates Plunge: Is a Market Correction Coming? appeared first on Coin Edition.
