BlockBeats news, June 5: According to Coinglass data, as Bitcoin continued its sharp decline today, dropping as low as $61,126.01, current funding rates on major CEXs and DEXs indicate a renewed strong bearish sentiment in the market, 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, as it serves 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% 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.