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Crypto Market Drops Below $92,000 as Funding Rates Turn Negative

Coinglass data shows Bitcoin, Ethereum, and Solana near prior lows, signaling bearish sentiment in both centralized and decentralized exchanges.

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Summary

On January 21, Bitcoin fell over 0.5%, approaching prior lows, while Ethereum dropped more than 1%, holding near $2,900. Coinglass data indicated that funding rates for Bitcoin, Ethereum, and Solana turned negative on Binance, signaling bearish sentiment in CEX and DEX markets.

Terms & Concepts
  • Funding rates: Periodic payments between traders in perpetual futures contracts to keep them aligned with the spot market price.
  • CEX (Centralized Exchange): A cryptocurrency trading platform operated by a central authority, such as Binance or Coinbase.
  • DEX (Decentralized Exchange): A peer-to-peer platform for cryptocurrency trading without a central governing entity, using smart contracts.