Gate News reports that on March 6, according to Coinglass data, after last night’s decline, the funding rates on major CEX and DEX platforms still indicate a bearish market sentiment. Bitcoin funding rates have shifted from neutral to negative, while Ethereum remains at a neutral rate.
Funding rates are fees set by cryptocurrency trading platforms to maintain the balance between contract prices and the underlying asset prices, typically applicable to perpetual contracts. They serve as a mechanism for transferring funds between long and short traders; the platform does not charge this fee. It is used to adjust the cost or profit for traders holding contracts, helping to keep contract prices close to the underlying asset prices.
A funding rate of 0.01% indicates the baseline rate; a rate above 0.01% suggests a generally bullish market; a rate below 0.005% indicates a generally bearish market.
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