Crypto Market Shows Bearish Trend as Funding Rates Decline

According to BlockBeats, recent data from Coinglass indicates that funding rates across major centralized and decentralized exchanges suggest a bearish outlook for the cryptocurrency market. The funding rates for key cryptocurrencies are detailed in the accompanying data. Funding rates are fees set by cryptocurrency trading platforms to maintain a 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 platform collecting these fees. It serves to adjust the cost or yield of holding contracts, ensuring that contract prices remain close to the prices of the underlying assets. A funding rate of 0.01% is considered the baseline. When the funding rate exceeds 0.01%, it indicates a generally bullish market sentiment. Conversely, when the funding rate falls below 0.005%, it reflects a predominantly bearish market sentiment.