Bitcoin Funding Rates Signal Bearish Market on Major CEXs and DEXs, Coinglass Data Shows

As of December 6, COINOTAG News reports, per Coinglass data, that funding rates across major CEXs and DEXs for perpetual contracts signal a cautiously bearish market mood. Readings cluster near the 0.01% baseline, with occasional prints below, indicating limited upside pressure on longs.

In simple terms, the funding rate is a periodic payment that keeps contract prices aligned with the underlying asset. It is exchanged between long and short traders and is not a fee collected by the platform. A rate above 0.01% has historically aligned with stronger long exposure, while sub-0.005% figures point to a bearish tilt.

Traders should incorporate these signals with price action and liquidity context. The current readings support a cautious stance and prudent risk management, favoring measured hedging over aggressive speculation until funding-rate dynamics offer clearer direction.

Source: https://en.coinotag.com/breakingnews/bitcoin-funding-rates-signal-bearish-market-on-major-cexs-and-dexs-coinglass-data-shows