Market sentiments remain bearish as funding rates indicate a downward trend

AI Overview

According to BlockBeats, Coinglass data shows that current funding rates on major centralized and decentralized exchanges indicate bearish market sentiments. Funding rates for major cryptocurrencies are detailed in the attached chart.

Funding rates are fees set by cryptocurrency trading platforms to maintain a balance between contract prices and the prices of underlying assets, typically 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 value or profit from holding contracts, ensuring that contract prices remain close to asset prices.

A funding rate of 0.01% indicates a baseline rate. When the funding rate exceeds 0.01%, it indicates bullish market sentiment. Conversely, a rate below 0.005% indicates a bearish outlook.$BTC