Funding rates across major CEXs and DEXs point to a more bearish crypto market

May 16 — Coinglass data show that as Bitcoin weakened and briefly slipped below $78,000, funding rates on leading centralized and decentralized exchanges have moved deeper into bearish territory, underscoring growing downside sentiment, according to BlockBeats. BlockBeats explanation: A funding rate is a periodic fee used in perpetual futures to keep contract prices aligned with the underlying spot market. It is exchanged between long and short traders rather than collected by the platform, and it adjusts the cost or return of holding positions so prices stay close to the underlying asset. A 0.01% funding rate is considered the baseline. Readings above 0.01% typically signal a broadly bullish market, while levels below 0.005% generally indicate bearish conditions.