COINOTAG News reports, citing Coinglass data on December 19, that prevailing funding rates across major CEX and DEX venues tilt toward bearish sentiment. Yet, several BTC‑led pairs on Binance have drifted toward neutral, signaling selective liquidity resilience even as the broader market narrative remains cautious.
Funding rate is a mechanism to keep perpetual contracts aligned with the underlying asset price; it represents the periodic fee exchanged between long and short traders rather than a charge levied by the exchange. A 0.01% baseline marks neutral territory, while readings above 0.01% indicate a bullish tilt and below 0.005% suggest a bearish bias.
Traders should contextualize these signals within overall market liquidity and their risk tolerance. As funding conditions evolve, price action may adjust gradually, with Binance BTC pairs illustrating how a nuanced funding landscape can coexist with a subdued broader backdrop. Maintain discipline in position sizing and risk controls.
Source: https://en.coinotag.com/breakingnews/bitcoin-btc-funding-rates-on-binance-turn-neutral-amid-bearish-market-coinotag-reports-using-coinglass-data
