Current mainstream CEX and DEX funding rates indicate a significant market shift towards bearish sentiment

BlockBeats News, May 21st, according to Coinglass data, as Bitcoin saw a slight increase, the current funding rates on mainstream CEXs and DEXs indicate a significant bearish shift in the market, with specific funding rates shown in the chart below.

BlockBeats Note: The funding rate is a fee set by cryptocurrency exchanges to maintain the balance between the contract price and the underlying asset price, usually applicable to perpetual contracts. It is a fund exchange mechanism between long and short traders, and the trading platform does not charge this fee. It is used to adjust the cost or profit of traders holding contracts to keep the contract price close to the underlying asset price.

When the funding rate is 0.01%, it represents the baseline rate. When the funding rate is above 0.01%, it indicates a generally bullish market. When the funding rate is below 0.005%, it indicates a generally bearish market.