Market Sentiment Turns Bearish | Funding Rates Signal Caution

Latest data from Coinglass, reported by BlockBeats, shows that funding rates across major centralized and decentralized crypto exchanges continue to signal bearish sentiment in the market.

What does this mean?

Funding rates help balance the price of perpetual contracts with the actual value of crypto assets. When these rates drop below 0.005%, it’s a strong indicator that most traders are betting on a price decline.

Currently, funding rates for key cryptocurrencies are staying below the neutral 0.01% mark, highlighting a cautious or negative outlook among investors.

TL;DR:

The market is leaning bearish, and traders should proceed with care. Watch those funding rates – they’re often a sneak peek into market mood!