Cryptocurrency Market Shows Bearish Sentiment Amid Negative Funding Rates

According to BlockBeats, data from Coinglass indicates that the cryptocurrency market is experiencing a bearish sentiment as it remains stagnant over the weekend. The funding rates across major centralized and decentralized exchanges (CEX and DEX) are predominantly negative, reflecting a pessimistic outlook. 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 rate 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, ensuring the contract price remains close to the asset price. A funding rate of 0.01% is considered the benchmark rate. When the rate exceeds 0.01%, it indicates a bullish market sentiment. Conversely, when the rate falls below 0.005%, it suggests a bearish market sentiment.