Crypto Market Shows Bearish Trend Amid Current Funding Rates

According to BlockBeats, data from Coinglass indicates that the current funding rates on major centralized and decentralized exchanges suggest a bearish trend in the cryptocurrency market. The funding rates for major cryptocurrencies are detailed in the accompanying chart. Funding rates are fees set by cryptocurrency trading platforms to maintain a balance between contract prices and the prices of the underlying assets, typically applied to perpetual contracts. This mechanism facilitates the exchange of funds between long and short traders, without the platform collecting these fees. It serves to adjust the cost or profit of holding contracts, ensuring that contract prices remain close to the underlying asset prices. A funding rate of 0.01% is considered the baseline rate. When the funding rate exceeds 0.01%, it indicates a generally bullish market sentiment. Conversely, when the funding rate falls below 0.005%, it reflects a predominantly bearish market sentiment.