Crypto Market Funding Rates Indicate Neutral Sentiment

According to BlockBeats, data from Coinglass reveals that the funding rates on major centralized and decentralized exchanges (CEX and DEX) indicate a neutral sentiment in the cryptocurrency market. The market is neither predominantly bearish nor bullish at this time. 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 trading platform collecting these fees. The purpose is to adjust the cost or profit of holding contracts, ensuring that contract prices remain close to the underlying asset prices. A funding rate of 0.01% is considered the baseline. When the rate exceeds 0.01%, it suggests a bullish market sentiment. Conversely, a rate below 0.005% indicates a bearish outlook.