Crypto Market Plunges as BTC and ETH Funding Rates Turn Negative

The cryptocurrency market is experiencing a decline across the board, according to data from a certain exchange. On July 17, Bitcoin (BTC) was quoted at $62,970.53, a 24-hour decrease of 1.76%, while Ethereum (ETH) fell by 2.81% to $1,832.07.

Funding rates, which are set by trading platforms to balance perpetual contract prices with the underlying asset prices, have turned negative for both BTC and ETH. CoinGlass's data shows that BTC's weighted funding rates for positions and trading volume are 0.0041% and 0.0030%, respectively, while ETH's two weighted rates are 0.0045%. All of these rates are below the bearish threshold of 0.005%, indicating a clear bearish sentiment in both assets.

ETH's weighted rate is slightly higher than BTC's, suggesting that market sentiment for Ethereum may be relatively stronger than Bitcoin's at this time.