Market Sentiment Remains Bearish for BTC and ETH

According to BlockBeats, data from Coinglass indicates that current funding rates on major centralized and decentralized exchanges suggest a bearish sentiment for Bitcoin (BTC) and Ethereum (ETH). 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 mechanism involves the exchange of funds between long and short traders, without the platform charging a fee, to adjust the cost or yield of holding contracts, ensuring contract prices remain close to the asset prices. A funding rate of 0.01% is considered the benchmark rate. When the funding rate exceeds 0.01%, it indicates a general bullish market sentiment. Conversely, when the funding rate falls below 0.005%, it reflects a bearish market sentiment.