The current funding rates on major CEX and DEX platforms indicate a deepening bearish sentiment in the market.
BlockBeats news, on May 16, according to Coinglass data, as Bitcoin weakened and once fell below $78,000, current mainstream CEX and DEX funding rates show a deepening bearish sentiment in the market. The specific funding rates are shown in the attached image.
BlockBeats note: The funding rate is a fee set by cryptocurrency trading platforms to maintain the balance between contract prices and the underlying asset price, usually applicable to perpetual contracts. It is a funding exchange mechanism between long and short traders; the trading platform does not charge this fee. It is used to adjust the cost or return of holding contracts for traders, so that the contract price stays close to the underlying asset price.
When the funding rate is 0.01%, it represents the benchmark rate. When the funding rate is higher than 0.01%, it indicates the market is generally bullish. When the funding rate is lower than 0.005%, it indicates the market is generally bearish.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
