Market Sentiment Remains Bearish as Funding Rates Indicate Downtrend

According to BlockBeats, recent data from Coinglass reveals that funding rates across major centralized and decentralized exchanges continue to reflect a bearish market sentiment following several days of adjustments. Funding rates are a mechanism used by cryptocurrency trading platforms to maintain 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 yield of holding contracts, ensuring contract prices remain close to the asset prices. A funding rate of 0.01% signifies a baseline rate. When the funding rate exceeds 0.01%, it indicates a general bullish market sentiment. Conversely, a rate below 0.005% suggests a bearish outlook in the market.