Cryptocurrency News: Cryptocurrency funding rates indicate neutral to bearish market sentiment on June 18 AI Summary Key Points: Funding rates across major centralized and decentralized exchanges suggest that the market leans slightly towards neutral to bearish. Most major cryptocurrencies show funding rates below the bullish threshold of 0.01%. Persistently 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 major cryptocurrencies on both centralized exchanges (CEXs) and decentralized exchanges (DEXs) show moderately neutral to bearish sentiment across the board. The rates suggest that traders are cautious, with no clear shift in momentum favoring bulls or bears. While some assets hover near the benchmark of 0.01%, most remain below it, indicating that short positions are more dominant or that long traders are not confident enough to push prices higher. What are funding rates and why are they important? Funding rates are periodic payments between traders holding long or short positions in perpetual contracts. These rates are designed to keep the price of the perpetual contract aligned with the spot market price. When funding rates exceed 0.01%, it indicates bullish market sentiment – the debtors are willing to pay sales to maintain their positions. When funding rates drop below 0.005%, it reflects bearish market conditions – selling dominates and buyers are pressured. A rate of around 0.01% is considered neutral, indicating a balanced market. Unlike maker or taker fees, these payments are made between traders and are not collected by the platform. Current Market Overview The current funding rate landscape confirms a lack of directional conviction in the market: Bitcoin and Ethereum funding rates hover near neutrality, indicating that traders are awaiting macroeconomic signals (such as updates on Federal Reserve policy or geopolitical clarity). Many altcoins show funding rates just below 0.005%, indicating increasing selling pressure on shorts, particularly on small-cap or highly volatile coins. This aligns with the broader consolidation phase observed in recent price movements, where most cryptocurrencies struggle to break key resistance levels amid global uncertainty.
