Matrixport: Perpetual Contract Funding Rate Resumes Bullish Trend

On January 22nd, Matrixport released today's chart report which stated that recently, the funding rate of perpetual contracts has decreased significantly, creating a sharp contrast with the high levels witnessed in November last year (when the funding rate was at an extremely high level). According to historical patterns, this kind of high level usually indicates a short-term market top, followed by a period when the market needs to correct. Generally, this correction phase is accompanied by a decrease in the funding rate and the liquidation of high-leverage long positions. This situation is no exception. As of mid-January, the funding rate had dropped to single-digit levels, a range that is usually related to the continuation of a bull market. However, recently, the funding rate has once again risen to double-digit levels, indicating a resurgence of speculative activity. This upward trend is a positive sign, reflecting an increase in trader confidence and a willingness to pay a higher funding rate to increase leverage, which may potentially drive the next phase of the bull market.