BTC funding rates turn negative despite price breaking $80K

Despite Bitcoin's recovery to $80,000, perpetual futures funding rates on major centralized (CEX) and decentralized (DEX) exchanges have turned negative, BlockBeats reported, citing data from Coinglass. Funding rates are a mechanism in perpetual futures contracts designed to align their price with the spot market, adjusted through payments between long and short position holders. A rate above 0.01% is typically considered a bullish signal, while a rate below 0.005% is seen as bearish. The current funding rate has fallen below 0.005%, suggesting that bearish sentiment is prevailing among investors.