Market Sentiment Remains Bearish as Funding Rates Indicate Downtrend

According to BlockBeats, data from Coinglass reveals that the current funding rates on major centralized and decentralized exchanges (CEX and DEX) suggest a bearish market sentiment. The funding rates for key cryptocurrencies are detailed in the accompanying data. Funding rates are fees set by cryptocurrency trading platforms to maintain a balance between contract prices and the prices of the underlying assets, typically applied to perpetual contracts. This mechanism facilitates the exchange of funds between long and short traders, without the platform collecting these fees, to adjust the cost or profit of holding contracts, ensuring that contract prices remain close to the asset prices. A funding rate of 0.01% indicates a neutral baseline. When the funding rate exceeds 0.01%, it suggests a bullish market sentiment. Conversely, a funding rate below 0.005% indicates a bearish market sentiment.