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

May 25th — per data from Coinglass — as Bitcoin posted a minor gain while remaining in a consolidation phase, current funding rates on major centralized (CEX) and decentralized (DEX) crypto exchanges indicate significant bearish market sentiment, as outlined in the attached image. BlockBeats Note: The funding rate is a fee established by cryptocurrency exchanges to maintain parity between perpetual contract prices and the underlying asset’s value. This is a fund transfer mechanism between long and short traders; exchanges do not retain these fees. Instead, the funding rate adjusts the cost or profit for traders holding perpetual contracts to keep the contract price closely aligned with the underlying asset’s market price. A funding rate of 0.01% serves as the baseline: a rate above 0.01% generally signals bullish market sentiment, while a rate below 0.005% typically points to bearish sentiment.