Funding rate turns bearish: After the adjustment, the market becomes more pessimistic, and altcoins face greater pressure

【Blockchain Rhythms】The cryptocurrency market has experienced a wave of correction over the past two days. According to the latest data from Coinglass, the current situation is quite interesting——mainstream CEX and DEX funding rates both indicate that the market is returning to a bearish stance, and the pessimism towards altcoins has reached a new high.

Here’s an explanation of what funding rates are. In perpetual contract trading, to prevent the contract price from deviating too far from the spot price, trading platforms set up a mechanism called the funding rate. In simple terms, it’s a fund transfer system between longs and shorts——longs pay shorts, or vice versa. The platform itself does not take this fee; it’s solely used to maintain the balance between contract and spot prices.

The standard for judging market sentiment is as follows: a funding rate of 0.01% is the baseline. Exceeding 0.01% indicates a bullish market; dropping below 0.005% suggests a bearish market. Based on current data, the funding rates for mainstream coins have already returned to a bearish level, and smaller coins are even less popular, with a particularly strong bearish atmosphere. After this correction, the change in market sentiment is quite evident.