BlockBeats news, on August 1, according to Coinglass data, as Bitcoin fluctuates and weakens, current funding rates on major CEXs and DEXs indicate a diminished bearish sentiment in the market, with specific funding rates shown in the attached chart.
BlockBeats: Funding rate is a fee set by cryptocurrency exchanges to maintain alignment between contract prices and the prices of underlying assets, typically applicable to perpetual contracts. It is a mechanism for transferring funds between long and short traders; exchanges do not collect this fee. Instead, it adjusts the cost or profit of holding contracts to keep contract prices closely aligned with the prices of the underlying assets.
A funding rate of 0.01% represents the baseline rate. When the funding rate exceeds 0.01%, it indicates that the market is generally bullish. When the funding rate is below 0.005%, it indicates that the market is generally bearish.