Changes in funding rates can also indicate shifts in market sentiment regarding bullish or bearish trends.

Funding rates are fees set by cryptocurrency trading platforms to maintain the balance between contract prices and the underlying asset prices, typically applicable to perpetual contracts.

They serve as a mechanism for transferring funds between long and short traders; the trading platform does not charge this fee. Instead, it adjusts the cost or profit for traders holding contracts to keep the contract price close to the underlying asset price.

When the funding rate is 0.01%, it indicates the baseline rate.
When the funding rate exceeds 0.01%, it signifies a generally bullish market.
When the funding rate is below 0.005%, it indicates a generally bearish market.

Therefore, we can also predict the shift in market sentiment between bullish and bearish by analyzing changes in the funding rate, providing guidance for contract trading directions.