CEX and DEX Funding Rates Signal Persistent Bearish Sentiment in Crypto Market

On December 16th, data compiled by Coinglass, and reported by BlockBeats, indicated that funding rates across major Centralized Exchange (CEX) and Decentralized Exchange (DEX) platforms continue to reflect a pervasive bearish sentiment within the cryptocurrency market. This sustained negative outlook is particularly evident in perpetual futures contracts, where funding rates act as a crucial mechanism to balance contract prices with underlying spot assets. These fees, exchanged between long and short traders, serve as a direct indicator of market positioning. A funding rate below 0.005% is generally interpreted as a sign of widespread bearishness, contrasting with rates exceeding 0.01% which typically signal prevailing bullish conditions. The current readings underscore a persistent negative bias among traders, suggesting a continued downturn.