ChainThink News, January 24: According to Coinglass data, Bitcoin's attempt to break $90,000 has stalled, with the current price temporarily at $89,627. Current funding rates on major CEXs and DEXs indicate a moderation in bearish sentiment toward BTC and SOL, with some trading platforms having reverted to neutral funding rates. However, widespread bearish sentiment toward altcoins remains, as illustrated in the attached chart showing funding rates for key cryptocurrencies.

ChainThink Note: Funding rate is a mechanism employed by cryptocurrency exchanges to maintain equilibrium between perpetual contract prices and underlying asset prices. It primarily applies to perpetual contracts. This rate facilitates capital transfer between long and short positions, with no fee charged by the exchange itself. Instead, it adjusts the cost or return of holding contracts to align contract pricing closely with the spot price of the underlying asset.

A funding rate of 0.01% represents the base rate. A rate above 0.01% indicates prevailing bullish market sentiment. A rate below 0.005% signals widespread bearish sentiment.