Market Sentiment Remains Bearish as Funding Rates Indicate Downtrend

According to BlockBeats, current data from Coinglass reveals that funding rates on major centralized and decentralized exchanges (CEX and DEX) indicate a continued bearish market sentiment. The funding rates for major cryptocurrencies are detailed in the accompanying chart. Funding rates are fees set by cryptocurrency trading platforms to maintain the 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 charging this fee, 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% signifies a baseline rate. When the funding rate exceeds 0.01%, it indicates a generally bullish market sentiment. Conversely, when the funding rate falls below 0.005%, it reflects a predominantly bearish market outlook.