Bitcoin Strength Eases Bearish Sentiment in Crypto Funding Rates

Funding rates indicate bearish sentiment has eased as Bitcoin (BTC) strengthened.

Funding rates are payments exchanged between traders holding opposing positions in perpetual contracts. They help keep contract prices close to the underlying asset’s price, and exchanges do not collect the payments.

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