Funding rates on major exchanges turn negative amid growing bearish sentiment

Funding rates on major centralized (CEX) and decentralized (DEX) exchanges have turned negative as Bitcoin (BTC) fell to $61,126 today, BlockBeats reported, citing data from CoinGlass. The outlet noted that this shift indicates a clear turn toward bearish sentiment among market participants. Funding rates are a mechanism in perpetual futures contracts designed to align the futures price with the spot price through payments exchanged between long and short traders. A rate above 0.01% is typically considered a bullish signal, while a rate below 0.005% is interpreted as bearish.