On August 22, as Bitcoin surged significantly this week, the funding rates of mainstream CEX and DEX indicate that the market has returned to a neutral stance. Specific funding rate data has been released. The funding rate is a fee set by cryptocurrency trading platforms to maintain the balance between contract prices and the prices of underlying assets, applicable to perpetual contracts. It serves as a mechanism for capital exchange between long and short traders, and trading platforms do not charge this fee. The aim is to adjust the cost or profit of traders holding contracts, keeping contract prices close to the prices of underlying assets. When the funding rate is 0.01%, it indicates the benchmark rate; when it exceeds 0.01%, the market is generally bullish; when it falls below 0.005%, the market is generally bearish.
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