Cryptocurrency Funding Rates Indicate Neutral Market Sentiment

According to BlockBeats, data from Coinglass reveals that current funding rates on major centralized and decentralized exchanges suggest a neutral market sentiment. The rates do not indicate a widespread bearish or bullish outlook. Funding rates are fees set by cryptocurrency trading platforms to maintain the 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 charging this fee. It adjusts the cost or yield of holding contracts to keep contract prices close to the asset prices. A funding rate of 0.01% signifies a baseline rate. When the rate exceeds 0.01%, it indicates a generally bullish market sentiment. Conversely, a rate below 0.005% suggests a bearish outlook.