Matrixport: The funding rate for perpetual contracts shows a bullish trend again
ChainCatcher news, Matrixport released today's chart report indicating that recently, the funding rate for perpetual contracts has significantly declined, contrasting sharply with the high levels seen in November last year (when the funding rate was at an excessively high level). Historically, such high levels often indicate a short-term market peak, after which the market requires time for correction. Typically, this correction phase is accompanied by a decline in funding rates and the liquidation of high-leverage long positions.The current situation is no different. As of mid-January, the funding rate has dropped to single-digit levels, which is usually associated with the continuation of a bull market. Recently, the funding rate has risen again to double-digit levels, signaling a resurgence in speculative activity. This upward trend is a positive sign, reflecting that traders' confidence has improved and they are willing to pay higher funding rates to increase leverage, potentially driving the next phase of the bull market.
