Funding Rates Signal Bearish Conditions as Bitcoin Weakens Again

Funding rates indicate bearish market conditions as Bitcoin (BTC) weakened again, reflecting the cost of holding positions in perpetual futures.

These contracts use funding payments exchanged between traders to help keep contract prices close to the underlying asset’s price. Platforms do not collect the payments; they pass between traders holding long and short positions.

A funding rate of 0.01% is the benchmark. Rates above 0.01% indicate broadly bullish positioning, while rates below 0.005% indicate broadly bearish positioning.