Funding rates on major centralized and decentralized exchanges (CEXs and DEXs) are signaling a deepening bearish sentiment in the cryptocurrency market. According to Coinglass data, as Bitcoin experiences slight declines and remains range-bound, the current funding rates have dropped below the baseline of 0.01%, indicating a bearish outlook.
Funding rates are crucial in maintaining the alignment between contract prices and underlying asset prices, particularly in perpetual contracts. A rate below 0.005% suggests a bearish market sentiment, as traders adjust their positions in response to market conditions.
Crypto Market Shows Bearish Sentiment as Funding Rates Decline
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