Crypto Market Sentiment Shifts as Funding Rates Stabilize

According to BlockBeats, data from Coinglass indicates that the funding rates on major centralized and decentralized exchanges suggest a shift in the crypto market sentiment, which is no longer bearish. The funding rates for key cryptocurrencies are detailed in the accompanying data. Funding rates are a mechanism used by cryptocurrency trading platforms to maintain the balance between contract prices and the prices of the underlying assets, typically applied to perpetual contracts. This rate facilitates the exchange of funds between long and short traders, without the trading platform charging a fee. It adjusts the cost or profit of holding contracts to keep the contract price aligned with the asset price. A funding rate of 0.01% is considered the baseline. When the rate exceeds 0.01%, it indicates a generally bullish market sentiment. Conversely, a rate below 0.005% suggests a bearish outlook.