Bitcoin continues to trade within a range as funding rates on major centralized and decentralized exchanges (CEXs and DEXs) indicate a sustained bearish sentiment, according to Coinglass data. Ethereum, which had previously seen neutral funding rates, has also turned negative again, suggesting a similar market outlook.
Funding rates, which are fees set by trading platforms to align contract prices with underlying asset prices, show that when rates fall below 0.005%, it reflects a bearish market sentiment. These rates are crucial for perpetual contracts, as they facilitate fund exchanges between long and short traders, helping maintain price alignment without the platform collecting these fees.
Bitcoin and Ethereum Funding Rates Signal Market Bearishness
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