CEX and DEX Expense Ratios Drop Below 0.005%, Signaling Strong Bearish Market Sentiment

Major exchange funding rates fall below the 0.005% threshold, indicating a shift to bearish positioning despite slight Bitcoin strength.

Woofun AI data shows that expense ratios across major centralized and decentralized exchanges have declined, reflecting a strongly bearish market stance even as Bitcoin exhibits minor resilience. The expense ratio functions as a mechanism to align perpetual contract prices with underlying asset values by redistributing capital between long and short traders, rather than serving as a platform fee. While a rate of 0.01% represents the baseline, current levels dropping below 0.005% signal prevailing bearish sentiment, whereas rates above 0.01% would indicate bullish conditions.