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 suggest a bearish market sentiment. The funding rates for key cryptocurrencies are shown to be leaning towards a downtrend. Funding rates are fees set by cryptocurrency trading platforms to maintain the 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 trading platform collecting these fees. The purpose is 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% is considered the benchmark rate. When the funding rate exceeds 0.01%, it indicates a bullish market sentiment. Conversely, when the funding rate falls below 0.005%, it reflects a bearish market sentiment.