Market Sentiment Remains Bearish as Funding Rates Indicate Downtrend

According to BlockBeats, data from Coinglass reveals that the current funding rates on major centralized and decentralized exchanges indicate a bearish market sentiment. The funding rates for key cryptocurrencies are shown to reflect this trend. Funding rates are a mechanism used by cryptocurrency trading platforms to maintain the balance between contract prices and the prices of the underlying assets, typically applied to perpetual contracts. This system facilitates the exchange of funds between long and short traders, without the platform charging a fee, to adjust the cost or profit of holding contracts and keep contract prices aligned with the underlying asset prices. A funding rate of 0.01% is considered the baseline rate. When the funding rate exceeds 0.01%, it suggests a bullish market sentiment. Conversely, when the funding rate falls below 0.005%, it indicates a bearish market sentiment.