Market sentiment remains bearish while funding rates indicate a downward trend

According to BlockBeats, data from Coinglass reveals that current funding rates on major centralized and decentralized exchanges indicate bearish sentiment in the market. The funding rates of major cryptocurrencies are detailed in the attached chart.

Funding rates are fees set by cryptocurrency trading platforms to maintain balance between contract prices and underlying asset prices. They are generally applied to perpetual contracts. This mechanism facilitates the exchange of funds between traders with long and short positions, without the platform charging this fee, to adjust the cost or profitability of holding the contracts, ensuring that contract prices remain close to the prices of the assets.

A funding rate of 0.01% represents a base rate. When it exceeds 0.01%, it indicates a bullish market trend. Conversely, a rate below 0.005% indicates a bearish outlook.