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Matrixport: The funding rate for perpetual contracts shows a bullish trend again

Matrixport: The funding rate for perpetual contracts shows a bullish trend again

Bitget2025/01/22 08:14
BTC-0.22%

Matrixport released a chart report today indicating that recently, the funding rate of perpetual contracts has significantly fallen, forming a stark contrast to the high levels in November last year (when the funding rate was at an excessively high level). Historically, such highs often mean that the market has reached a short-term peak and then needs time for correction. Usually, this correction phase is accompanied by a decline in funding rates and liquidation of highly leveraged long positions. The same is true this time. By mid-January, the funding rate had dropped to single-digit levels which are usually associated with the continuation of bull markets. Recently however, the funding rate has risen back to double digits again, signaling a revival of speculative activity. This upward trend is a positive signal reflecting traders' increased confidence and willingness to pay higher funding rates to increase leverage input which could potentially drive the next stage of bull market.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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