Bitcoin Funding Rates Indicate Shift to Bearish Market Sentiment

The cryptocurrency market is showing signs of returning to a bearish sentiment, according to recent data from Coinglass. This comes as Bitcoin saw a slight decline on July 12th and continued to trade within a range-bound movement.

The funding rates on major CEXs (centralized exchanges) and DEXs (decentralized exchanges) are key indicators of market sentiment. When the funding rate is above 0.01%, it suggests a generally bullish market, while below 0.005% indicates a bearish market.

Currently, the funding rates on major CEXs and DEXs indicate a significant return to a bearish market. This means that traders are facing higher costs or reduced profits when holding contracts, as the contract price is adjusted to keep it close to the underlying asset price.