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 in the accompanying data. Funding rates are fees set by cryptocurrency trading platforms to maintain a 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% represents the benchmark 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 suggests a predominantly bearish market outlook.