Current mainstream CEX and DEX funding rates indicate the market remains significantly bearish

BlockBeats News, May 25th, according to Coinglass data, as Bitcoin continues to trade sideways with a slight upward trend, the current mainstream CEX and DEX funding rates indicate a significant bearish sentiment in the market, as shown in the chart below.

BlockBeats Note: The funding rate is a fee set by cryptocurrency exchanges to keep the perpetual contract price in line with the underlying asset price. It is usually applied to perpetual contracts and serves as a mechanism for fund transfers between long and short traders. The exchange does not take this fee but uses it 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 sentiment. When the funding rate is below 0.005%, it indicates a generally bearish market sentiment.