Market sentiment remains bearish according to recent data from Coinglass, which reveals that funding rates on major exchanges are signaling a downturn across the cryptocurrency landscape. Detailed funding rate information for key cryptocurrencies is provided in the accompanying table. 🤔
Funding rates play a vital role in cryptocurrency trading platforms by balancing contract prices with underlying assets. These rates facilitate the exchange of funds between long and short traders, while avoiding trading platform fees. This mechanism ensures that contracts maintain close proximity to underlying asset prices. In essence, a funding rate of 0.01% is generally considered a baseline. When it surpasses this level, it signals a generally bullish market outlook. Conversely, when the rate drops below 0.005%, it points towards a predominantly bearish market trend.