COINOTAG News, December 5 — Based on Coinglass data, the funding rates across major CEXs and DEXs signal a bearish backdrop for perpetual contracts, with the attached figure noting the latest readings for key assets.
In practice, the funding rate is a periodic fee designed to tether the contract price to the underlying spot price, balancing long and short exposure on the platform. Rather than a platform charge, it functions as a cost of carry between traders, guiding profitability of leveraged positions. A rate around 0.01% is viewed as the baseline; prints above this threshold imply renewed bullish momentum, while rates below roughly 0.005% indicate creeping bearish pressure.
Traders and risk managers should use this metric as a sentiment proxy and hedge cost reference, adjusting strategies as funding dynamics evolve. The current regime underscores cautious risk posture, with liquidity and funding costs shaping near-term positioning.