#MarketPullback The market sentiment remains negative as funding rates indicate a downward trend

AI Summary

According to BlockBeats, Coinglass data reveals that funding rates on major centralized and decentralized exchanges still indicate a negative market sentiment. Funding rates for major cryptocurrencies are detailed in the attached data.

Funding rates are a mechanism used by cryptocurrency trading platforms to maintain balance between contract prices and underlying asset prices, typically applied to perpetual contracts. This mechanism facilitates the exchange of funds between long and short traders, without imposing any fees by the trading platform. It adjusts the cost or profit of holding contracts, ensuring that contract prices remain close to underlying asset prices.

A funding rate of 0.01% is considered the baseline rate. When the funding rate exceeds 0.01%, it indicates an overall optimistic sentiment in the market. Conversely, when the funding rate drops below 0.005%, it indicates a primarily negative outlook towards the market.