BTC and ETH Funding Rates Return to Neutral on Major Exchanges While Altcoins Show Large Negative Rates

Funding rates for BTC and ETH returned to neutral levels on major centralized and decentralized exchanges on Jan. 10, suggesting the market is no longer broadly bearish on these assets, Coinglass data show. Many altcoins continue to display large negative funding rates across mainstream platforms, BlockBeats reports. Funding rates are a fee mechanism in perpetual contracts that align contract prices with underlying asset prices through payments between long and short traders; readings above 0.01% indicate bullish bias, while levels below 0.005% reflect bearish sentiment.