Cryptocurrency Market Sentiment Shifts as Funding Rates Indicate Bearish Trend

The cryptocurrency market has been experiencing fluctuations in recent times, with Bitcoin's price dropping below $78,000.

According to data from Coinglass, the funding rates on major CEX and DEX platforms are now showing a deepening bearish sentiment in the market.

The funding rate is a fee set by trading platforms to maintain balance between contract prices and underlying asset prices. It's used to adjust costs or returns for traders, keeping contract prices close to underlying asset prices.

When the funding rate is higher than 0.01%, it indicates a generally bullish market. Conversely, when it's lower than 0.005%, it signals a bearish trend.