Matrixport: Perpetual Contract Funding Rate Resumes Bullish Momentum

BlockBeats News, January 22nd, Matrixport released today's chart report stating that recently, the funding rate of perpetual contracts has significantly dropped, forming a clear contrast to the elevated levels seen in November of last year (when the funding rate was at an excessively high level). Based on historical patterns, this kind of peak often indicates a short-term market top, followed by a period where the market needs time to correct. Typically, this correction phase involves a drop in the funding rate and the liquidation of high-leverage long positions.

This situation is no exception. By mid-January, the funding rate had dropped to single-digit levels, a range that is usually associated with the continuation of a bull market. However, recently, the funding rate has once again risen to double-digit levels, signaling a resurgence in speculative activity. This upward trend is a positive signal, reflecting an increase in trader confidence and a willingness to pay a higher funding rate to increase leverage, which could potentially drive the next phase of the bull market.