BlockBeats news, on May 9, according to Coinglass data, as Bitcoin fell below the $80,000 level, current funding rates on major CEXs and DEXs indicate a generally bearish market sentiment, as shown in the attached chart.
BlockBeats Note: Funding rate is a fee set by cryptocurrency trading platforms to maintain alignment between contract prices and the prices of underlying assets, typically applicable to perpetual contracts. It is a mechanism for the exchange of funds between long and short traders; the platform does not collect this fee, but rather uses it to adjust traders’ costs or returns on holding contracts, ensuring that contract prices remain close to those of the underlying assets.
A funding rate of 0.01% indicates the baseline rate. When the funding rate exceeds 0.01%, it reflects widespread market bullishness. When the funding rate falls below 0.005%, it reflects widespread market bearishness.