Market Sentiment Turns Bullish as Funding Rates Indicate Optimism

According to BlockBeats, data from Coinglass reveals that current funding rates across major centralized and decentralized exchanges indicate a predominantly bullish market sentiment. Bitcoin (BTC) and Ethereum (ETH) are experiencing mostly neutral funding rates, while altcoins show a strong bullish trend. 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 these fees. The purpose is to adjust the cost or yield of holding contracts, ensuring that contract prices remain close to the asset prices. A funding rate of 0.01% signifies a baseline rate. Rates above 0.01% suggest a general market optimism, whereas rates below 0.005% indicate a bearish outlook.