Key Takeaways:
Funding rates across major CEXs and DEXs suggest the market is leaning neutral to slightly bearish.
Most top cryptocurrencies are showing funding rates below the bullish threshold of 0.01%.
Persistent low or negative funding rates often indicate increased short interest and cautious sentiment among traders.
Funding Rates Reflect Market Sentiment Trends
According to data from Coinglass on June 18, the current funding rates for mainstream cryptocurrencies on both centralized exchanges (CEXs) and decentralized exchanges (DEXs) are showing a neutral to mildly bearish sentiment across the board.
The rates suggest that traders are cautious, with no clear momentum shift in favor of bulls or bears. While some assets hover near the benchmark 0.01%, most remain below it, indicating that short positions are more dominant or that long traders are not confident enough to drive rates higher.
What Are Funding Rates and Why Do They Matter?
Funding rates are periodic payments between traders holding long or short positions in perpetual contracts. These rates are designed to keep the perpetual contract price in line with the spot market price.
When funding rates exceed 0.01%, it signals bullish market sentiment — longs are willing to pay shorts to keep their positions.
When funding rates fall below 0.005%, it reflects bearish market conditions — shorts dominate and pay the longs.
A rate around 0.01% is considered neutral, indicating a balanced market.
Unlike maker or taker fees, these payments are made between traders and not collected by the platform.
Current Market Outlook
The current funding rate landscape underscores a lack of directional conviction in the market:
Bitcoin and Ethereum funding rates are hovering near neutral, suggesting traders are waiting for macroeconomic cues (such as Fed policy updates or geopolitical clarity).
Several altcoins are showing funding rates slightly below 0.005%, indicating that short pressure is mounting, especially in smaller-cap or highly volatile tokens.
This aligns with the broader consolidation phase observed in recent price action, with most cryptocurrencies struggling to break key resistance levels amid global uncertainty.
