Cryptocurrency Market Funding Rates Return to Neutral

According to BlockBeats, data from Coinglass indicates that the funding rates on major centralized and decentralized exchanges have largely returned to a neutral stance, moving away from a predominantly bearish outlook. The specific funding rates for major cryptocurrencies are detailed in the 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 trading platform collecting these fees. It serves 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 baseline rate. When the funding rate exceeds 0.01%, it indicates a generally bullish market sentiment. Conversely, a funding rate below 0.005% suggests a bearish market sentiment.