Funding rates on major centralized and decentralized exchanges have declined, signaling a shift towards bearish sentiment in the cryptocurrency market. According to Coinglass data, despite a slight strengthening in Bitcoin's price, the current funding rates indicate a significant bearish trend.
Funding rates are fees set by trading platforms to balance contract prices with underlying asset prices, primarily affecting perpetual contracts. A rate below 0.005% suggests a bearish market, while rates above 0.01% indicate bullish sentiment. The recent decline in funding rates highlights a growing bearish outlook among traders.
Bearish Sentiment Grows as Funding Rates Decline on Major Exchanges
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