Recently, a phenomenon has pulled me out of bed.

I checked the market early this morning, from leading exchanges to decentralized platforms, and almost all funding rates are negative. No matter which platform's data I look at, the tone is consistently—green and lush. This synchronized bearish sentiment across the entire industry is indeed unusual.

First, let me explain what funding rates are. Both longs and shorts settle fees daily on exchanges. A positive rate indicates longs are paying shorts, while a negative rate means the opposite. Markets typically alternate between positive and negative, but if the entire chain drops into negative territory simultaneously, it signals that market sentiment has clearly shifted to bearish, with most people betting on prices going down.

I've been watching this market for eight years. This wave of widespread negative funding rates is indeed different from the sporadic bearish signals we've seen before. I reviewed data from the past three months, and there have only been three instances where mainstream coins and some secondary tokens simultaneously experienced negative funding rates across various trading platforms. After the first two times, the market experienced adjustments of varying degrees—some deep, some shallow—but none were spared.

This is what I want to emphasize—an all-encompassing bearish signal deserves serious attention, but it doesn't mean a big crash is imminent tomorrow. Many newcomers see this kind of data and panic, either rushing to cut their positions or stubbornly opening shorts. Both reactions are high-frequency actions that lead to losses.

The key is how to respond rationally. Bearish signals do have their logical basis, but the market is always more complex than you think. Funding rate data is just one dimension; it should be considered alongside trading volume, open interest, and macroeconomic background. My strategy is: before confirming a trend, protect your positions. Don't chase highs or rush to bottom-fish. Wait until more signals converge before making decisions. Even if your judgment is wrong, losses will be manageable.

Negative funding rates themselves are not scary; what's frightening is losing your mind when you see the data.