Current Mainstream CEX and DEX Funding Rates Indicate Market Returns to Bearish Sentiment

On April 5, according to Coinglass data, as Bitcoin continues to fluctuate within a range, the current funding rates of mainstream CEX and DEX indicate that the market has returned to a fully bearish sentiment, as shown in the attached chart. BlockBeats notes that the funding rate is a fee set by cryptocurrency trading platforms to maintain the balance between contract prices and the prices of the underlying assets, typically applicable to perpetual contracts. It serves as a mechanism for the exchange of funds between long and short traders, with trading platforms not charging this fee. Instead, it adjusts the costs or profits of traders holding contracts to keep the contract prices close to the prices of the underlying assets. When the funding rate is 0.01%, it represents the benchmark rate. A funding rate above 0.01% indicates a generally bullish market, while a funding rate below 0.005% signifies a generally bearish market.