Matrixport： The significant drop in funding rates for perpetual contracts indicates that it may drive the next stage of the bull market

Odaily Planet Daily News: Matrixport released today's chart stating that recently, the funding rate for perpetual contracts has significantly fallen, forming a sharp contrast to the high level in November last year (when the funding rate was at an excessively high level). From a historical perspective, such high levels often indicate a short-term peak in the market, followed by time for correction. Usually, this correction phase is accompanied by a decrease in funding rates and the liquidation of high leverage long positions. The same applies to this situation. As of mid January, funding rates have dropped to single digit levels, which are typically associated with the continuation of bull markets. Recently, funding rates have once again rebounded to double-digit levels, indicating a resurgence in speculative activity. This upward trend is a positive signal, reflecting the increased confidence of traders and their willingness to pay higher funding rates to increase leverage investment, which may drive the next stage of the bull market.