Crypto Market Shows Bearish Sentiment for Altcoins, Bitcoin Remains Neutral

According to BlockBeats, data from Coinglass indicates that despite a recent recovery in the crypto market, funding rates on major centralized and decentralized exchanges (CEX and DEX) suggest a bearish outlook for altcoins, while Bitcoin maintains a neutral rate. Funding rates are fees set by cryptocurrency trading platforms to balance the contract price with the underlying asset price, typically applied to perpetual contracts. This mechanism facilitates the exchange of funds between long and short traders, without the platform charging this 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 baseline. When the rate exceeds 0.01%, it indicates a bullish market sentiment. Conversely, a rate below 0.005% reflects a bearish market sentiment.