Market Sentiment Shifts to Neutral as Funding Rates Stabilize

According to BlockBeats, recent data from Coinglass indicates a shift in market sentiment from bearish to neutral following a rebound and increased optimism on social media. The funding rates on major centralized and decentralized exchanges (CEX and DEX) for mainstream cryptocurrencies have largely returned to neutral levels. Funding rates are a mechanism used by cryptocurrency trading platforms to maintain the balance between contract prices and the prices of underlying assets, typically applied to perpetual contracts. This mechanism involves the exchange of funds between long and short traders, without the trading platform charging a fee, to adjust the cost or profit of holding contracts and keep contract prices close to the asset prices. A funding rate of 0.01% is considered the baseline. When the rate exceeds 0.01%, it indicates a bullish market sentiment, while a rate below 0.005% suggests a bearish outlook.