Cryptocurrency Funding Rates Return to Neutral After Market Rebound

According to BlockBeats, data from Coinglass indicates that after today's market rebound, funding rates for major centralized and decentralized exchanges have returned to neutral for several asset trading pairs. However, the overall market sentiment remains bearish. 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 long and short traders, without the platform charging this fee. It adjusts the cost or profit of holding contracts to keep contract prices aligned with underlying asset prices. A funding rate of 0.01% represents the benchmark rate. When the funding rate exceeds 0.01%, it indicates a generally bullish market sentiment. Conversely, a funding rate below 0.005% suggests a bearish market outlook.