Market Sentiment Turns Slightly Bearish as Funding Rates Shift

According to BlockBeats, data from Coinglass indicates that the current funding rates on major centralized and decentralized exchanges suggest a slight bearish sentiment in the market. Funding rates are a mechanism used by cryptocurrency trading platforms to maintain the balance between contract prices and the prices of underlying assets, typically applied to perpetual contracts. This rate 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, ensuring the contract price remains close to the asset price. A funding rate of 0.01% is considered the benchmark rate. When the rate exceeds 0.01%, it indicates a generally bullish market sentiment. Conversely, when the rate falls below 0.005%, it suggests a bearish outlook among traders.