Crypto Exchanges See Slight Funding Rate Rebound Amid Bearish Sentiment

Current mainstream centralized exchanges (CEX) and decentralized exchanges (DEX) have experienced a slight rebound in funding rates, but the overall sentiment remains bearish. This indicates that while there has been a minor recovery, the market is still largely pessimistic. The slight rebound suggests that there may be some optimism returning to the market, but the overall bearish sentiment indicates that investors are still cautious and uncertain about the future of the market.

The bearish sentiment in the market is likely due to a variety of factors, including the recent decline in spot markets and the overall economic uncertainty. The slight rebound in funding rates may be a sign that investors are starting to see some value in the market, but the overall bearish sentiment suggests that they are still hesitant to make significant investments. This is reflected in the fact that while there has been a slight rebound in funding rates, the overall sentiment remains bearish.

The funding rate is a fee set by cryptocurrency trading platforms to maintain the balance between the contract price and the underlying asset price, usually applicable to perpetual contracts. It is a fund exchange mechanism between long and short traders, and the trading platform does not charge 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. When the funding rate is less than 0.005%, it indicates a generally bearish market.

The bearish sentiment in the market is also reflected in the fact that major cryptocurrencies such as Bitcoin and Ethereum are still trading within well-defined descending channels. This indicates that the market is still in a downward trend, and investors are still cautious about making significant investments. The slight rebound in funding rates may be a sign that investors are starting to see some value in the market, but the overall bearish sentiment suggests that they are still hesitant to make significant investments.