Mainstream coin funding rates collectively decline, market sentiment leaning towards bearish?

【Blockchain Rhythm】Recently, I looked at the funding rates across major trading platforms and found an interesting signal——whether on centralized exchanges or decentralized platforms, the funding rates for mainstream cryptocurrencies are generally low, indicating that market sentiment is clearly bearish.

Regarding funding rates, many people might not fully understand what they are. Simply put, they are the fees paid between long and short traders in perpetual contracts, not platform charges, but the flow of funds between traders. The purpose of this mechanism is to prevent contract prices from deviating too far from spot prices.

Generally speaking, 0.01% is considered a neutral baseline. If the funding rate exceeds this number, it indicates that longs are dominant and traders are willing to pay shorts; conversely, if it falls below 0.005%, it suggests that shorts are prevailing and market expectations are quite pessimistic.

The current environment of universally low funding rates somewhat reflects investors’ cautious attitude. Of course, funding rates are just one of the reference indicators; it’s more reliable to consider them alongside other data.