Crypto Market Funding Rates Return to Neutral

According to BlockBeats, data from Coinglass indicates that the funding rates on major centralized and decentralized exchanges have returned to a neutral stance. The crypto market is no longer predominantly bearish, but it is not showing bullish tendencies either. 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 collecting these fees. It adjusts the cost or profit of holding contracts to keep contract prices aligned with the underlying asset prices. A funding rate of 0.01% is considered the baseline. When the rate exceeds 0.01%, it indicates a generally bullish market sentiment. Conversely, a rate below 0.005% suggests a bearish market outlook.