Cryptocurrency Funding Rates Show Neutral Trend After Recent Market Recovery

According to BlockBeats, data from Coinglass indicates that the funding rates on major centralized and decentralized exchanges have returned to a neutral stance following a recent market recovery over the past two days. Despite this shift, the overall sentiment remains slightly bearish. Funding rates are a mechanism used by cryptocurrency trading platforms to maintain the balance between contract prices and the prices of the underlying assets, typically applied to perpetual contracts. This system facilitates the exchange of funds between long and short traders, without the trading platform collecting any fees. It adjusts the cost or profit of holding contracts to keep their prices aligned with the underlying asset prices. A funding rate of 0.01% is considered the baseline. When the rate exceeds 0.01%, it indicates a generally bullish market sentiment. Conversely, a rate below 0.005% suggests a bearish outlook.