Market Sentiment Shows Divergence in Cryptocurrency Funding Rates

According to BlockBeats, recent data from Coinglass indicates a divergence in market sentiment as reflected in the funding rates of major centralized and decentralized exchanges. The current funding rates for mainstream cryptocurrencies reveal a mix of neutral and bearish outlooks. Funding rates are fees set by cryptocurrency trading platforms to maintain a balance between contract prices and the prices of underlying assets, typically applied to perpetual contracts. This mechanism facilitates the exchange of funds between long and short traders, without the platform charging this fee, to adjust the cost or profit of holding contracts and keep contract prices aligned with asset prices. A funding rate of 0.01% is considered the benchmark rate. When the funding rate exceeds 0.01%, it indicates a generally bullish market sentiment. Conversely, a funding rate below 0.005% suggests a bearish market sentiment.