🚨‼️Market Sentiment Turns Bearish as Funding Rates Decline🚨‼️
Data from Coinglass indicates that the funding rates on major centralized and decentralized exchanges are showing a bearish trend.
The funding rates for mainstream cryptocurrencies are detailed in the accompanying data.
Funding rates are fees set by cryptocurrency trading platforms to maintain the balance between contract prices and the prices of underlying assets, typically applied to perpetual contracts.
This mechanism facilitates the exchange of funds between long and short traders, without the platform charging this fee, to adjust the cost or profit of holding contracts and keep contract prices close to the asset prices.
A funding rate of 0.01% signifies a baseline rate. When the funding rate exceeds 0.01%, it suggests a bullish market sentiment.
Conversely, when the funding rate falls below 0.005%, it indicates a bearish market sentiment.
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