27-8-2025 – Funding rates on major centralized and decentralized cryptocurrency exchanges have dipped below 0.005%, signaling a bearish outlook for Bitcoin (BTC) and Ethereum (ETH), according to data from Coinglass. This development, first reported by Coinglass, highlights growing caution among traders in the volatile crypto market.
Funding rates, a key mechanism in perpetual contracts, help align contract prices with the underlying asset’s market value. When rates fall below 0.005%, it suggests that short traders dominate, reflecting pessimism about price growth. Rates above 0.01% typically indicate bullish sentiment, but the current data points to a shift toward bearish positions for both BTC and ETH. This comes amid broader market uncertainty, with macroeconomic factors and regulatory developments weighing on investor confidence.
The bearish tilt could impact trading strategies, as low funding rates may encourage more short positions, potentially increasing downward pressure on prices.Â
