The BitMEX Perpetual Contract Funding Rate is an important way to gauge whether the crowd on one of crypto's top exchanges, is getting overly greedy or fearful.
The metric is defined on our Santiment Academy as a fee paid by one side of the perpetual contract to the other. When the funding rate is positive, Longs pay Shorts. When the funding rate is negative, Shorts pay Longs.
So in essence, as traders, we're looking for high funding rates (greed) to be indicative of a potential upcoming top, and low funding rates to indicate a potential bottom (fear).
Bitcoin
0.01% funding rate is low for Bitcoin, and slightly bullish while down at this level.
Ethereum
0.08% funding rate is average for Ethereum.
XRP
XRP's funding rate is quite high at 0.15%. Somewhat bearish.
Litecoin
Litecoin's funding rate is mildly above average at 0.09%. Just slightly bearish.
Chainlink
Chainlink is average at 0.08%.
Bitcoin Cash
Bitcoin Cash is above average at 0.11%. Slightly bearish.
