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 continued bearish sentiment in the market. The funding rates for mainstream cryptocurrencies are detailed in the accompanying chart. Funding rates are fees set by cryptocurrency trading platforms to maintain 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 charging this fee. It serves 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 generally bullish market sentiment. Conversely, a funding rate below 0.005% indicates a bearish outlook.