According to BlockBeats, data from Coinglass indicates that the current funding rates on major centralized and decentralized exchanges suggest a bearish market sentiment. 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 the underlying assets, typically applied to perpetual contracts. This mechanism facilitates the exchange of funds between long and short traders, without the trading platform collecting these fees. It adjusts the cost or profit of holding contracts to keep contract prices aligned with the underlying asset prices.
A funding rate of 0.01% is considered the baseline. When the funding rate exceeds 0.01%, it indicates a bullish market sentiment. Conversely, when the funding rate falls below 0.005%, it reflects a bearish market sentiment.