Current Mainstream CEX, DEX Funding Rate Indicates Market-wide Bearish Sentiment

On October 29th, based on Coinglass data, the current mainstream CEX and DEX funding rates indicate that after a dip in the early hours of today, market participants have enhanced their bearish sentiment towards altcoins. The Bitcoin funding rate has also dropped from a neutral state to a bearish range, as shown in the specific funding rates in the following chart. BlockBeats Note: The funding rate is a fee set by cryptocurrency trading platforms to maintain the balance between the contract price and the underlying asset price. It is usually applicable to perpetual contracts and is a mechanism for the exchange of funds between long and short traders. The trading platform does not collect this fee. It is used 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 greater than 0.01%, it indicates a generally bullish market sentiment. When the funding rate is less than 0.005%, it indicates a generally bearish market sentiment.