What happened to USDT margin?
In binance its impossible to borrow USDT or BUSD.
Interest rates have raised significately
That's because traders are getting extremely bullish. When interest rates are high or there is no available USDT/BUSD for borrowing, it means traders are borrowing up all the supply to go long.
For rates to come down, longs either need to get shaken out of the market, or more stablecoin supply is needed on the lending side:
https://www.binance.com/en/lending/products?type=flexibleIn short, it only means liquidity is drying up. Maybe lenders are finding better places to spend their cash or simply there aren't enough lenders interested to put up cash to provide liquidity. It doesn't automatically mean that market sentiments are suddenly bullish. There's many more things to take into account before being able to say with confidence that the market is bullish. A single lending market lacking liquidity isn't indicative for the entire sector.