🔴Market sentiment is turning negative with declining funding rates📈📉
🔸️According to BlockBeats, data from Coinglass indicates that funding rates in major centralized and decentralized exchanges show a negative trend. Funding rates for major cryptocurrencies are detailed in the attached data.
🔸️Funding rates are fees set by cryptocurrency trading platforms to maintain balance between contract prices and underlying asset prices, usually applied to perpetual contracts. This mechanism facilitates the exchange of funds between long and short traders, without the platform imposing these fees, to adjust the cost or profit of holding contracts and keep contract prices close to asset prices.
🔸️A funding rate of 0.01% indicates a baseline rate. When the funding rate exceeds 0.01%, it indicates positive sentiment in the market. Conversely, when the funding rate falls below 0.005%, it indicates negative sentiment in the market.