Coinglass: Funding Rates Show Slight Bearish Sentiment

According to BlockBeats, recent data from Coinglass indicates that after a strong market rebound, the funding rates on major centralized and decentralized exchanges are currently showing a slightly bearish sentiment. Funding rates are a mechanism used 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 a fee, to adjust the cost or profit of holding contracts and keep contract prices close to the underlying asset prices.A funding rate of 0.01% is considered the baseline rate. When the funding rate exceeds 0.01%, it indicates a generally bullish market sentiment. Conversely, when the funding rate falls below 0.005%, it suggests a bearish market outlook.