Market Sentiment Remains Bearish as Funding Rates Indicate Downtrend

According to BlockBeats, data from Coinglass reveals that current funding rates across major centralized and decentralized exchanges indicate a bearish market sentiment. The funding rates for mainstream cryptocurrencies are detailed in the accompanying data. Funding rates are fees set by cryptocurrency trading platforms to maintain the 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 a fee, to adjust the cost or yield of holding contracts, ensuring contract prices remain close to the asset prices. A funding rate of 0.01% signifies a baseline rate. When the funding rate exceeds 0.01%, it suggests a bullish market sentiment. Conversely, a rate below 0.005% indicates a bearish outlook.