Coinglass data shows funding rates on major CEXs and DEXs have turned clearly bearish

BlockBeats reported on July 12 that data from Coinglass showed a clear shift back to bearish positioning across funding rates on major centralized and decentralized exchanges, as Bitcoin edged lower and stayed range-bound during the day. The reading points to a notable cooling in market sentiment in perpetual futures markets. The report also outlined how funding works in crypto derivatives. Funding rates are used mainly in perpetual contracts to keep contract prices close to the underlying asset. The payment is exchanged between long and short traders rather than collected by the trading platform itself. In practice, the mechanism changes the cost or return of holding a perpetual position so that prices do not drift too far from spot. According to the thresholds cited by BlockBeats, a 0.01% funding rate is considered the baseline. A rate above 0.01% usually signals a broadly bullish market, while a rate below 0.005% is generally read as a bearish signal. Based on current readings from major CEXs and DEXs, the market has moved back into a clearly bearish state.