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Current CEX and DEX Funding Rates Indicate Market Returns to Bearish Sentiment

On March 30, according to Coinglass data, as Bitcoin fell to $65,000 this morning, the current funding rates for mainstream CEX and DEX indicate a return to a broadly bearish market, as shown in the attached image. BlockBeats notes that the funding rate is a fee set by cryptocurrency trading platforms to maintain the balance between contract prices and the prices of underlying assets, typically applicable to perpetual contracts. It serves as a mechanism for the exchange of funds between long and short traders, with the trading platform not charging this fee. Instead, it adjusts the cost or profit of traders holding contracts to keep the contract price close to the underlying asset price. A funding rate of 0.01% indicates the benchmark rate. When the funding rate is greater than 0.01%, it signifies a generally bullish market. Conversely, when the funding rate is less than 0.005%, it indicates a generally bearish market.

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