ChainThink report, March 13: According to Coinglass data, the crypto market staged a rebound this morning, with Bitcoin recovering to touch $72,000 and Ethereum rising to reach $2,148. Current funding rates on major CEXs and DEXs indicate a alleviation of bearish sentiment, with funding rates across various trading pairs broadly returning to neutral (previously all negative). Specific funding rates for major cryptocurrencies are shown in the attached figure.

ChainThink note: Funding rate is a mechanism set by cryptocurrency exchanges to maintain equilibrium between perpetual contract prices and underlying asset prices. It primarily applies to perpetual contracts. The funding rate serves as a capital transfer mechanism between long and short traders. Exchanges do not collect this fee; instead, it adjusts the cost or return of holding contracts to keep contract prices closely aligned with spot prices.

A funding rate of 0.01% represents the base rate. When the funding rate exceeds 0.01%, it indicates a generally bullish market. When the funding rate falls below 0.005%, it signals a generally bearish market.