2025-12-24 13:22:05

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.

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RugResistant

· 6h ago

nah this is exactly the kind of pattern that catches people slipping. all those newbies gonna panic liquidate and that's when the real moves happen.

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zkProofInThePudding

· 6h ago

Eight years of experience as a seasoned trader, but I still think this negative fee rate is a bit scary. No need to rush all in, hold tight and observe, anyway those who lose money are the ones who panic out.

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ThatsNotARugPull

· 6h ago

Eight years of mouse trading, it's still worth listening to, but what I'm more afraid of is that this group of people will all follow the trend and short when negative fees are mentioned. When the time comes, a reverse cut will be all it takes.

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LiquidationSurvivor

· 7h ago

Eight years of experience as a seasoned trader, yet I still get scared by negative fees, which shows my lack of skill. Newbies cutting losses will have to pay tuition again this time. All green doesn't necessarily mean a drop immediately, but someone will definitely get liquidated, and that's normal. Negative fees are not scary; what's scary is the mentality, always the same every time. Holding positions is really the hardest part; I'm sure I'll be buying the dip again. Being bearish doesn't mean you can't make money; you still need to wait for signals to accumulate. Another once-in-three-years moment, will this time be different? That's why most people lose money because they know what to do but can't execute it.

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Deconstructionist

· 7h ago

Eight years of old leek's rambling, I've long been familiar with this set. Negative fee rates are indeed shocking, but those who truly make money are never scared out of it. The easiest trap for beginners is to panic when they see the data, I've seen this many times. Wait, is this negative fee rate really the same as the previous two times? The details seem a bit off. It's easy to say "don't chase highs or bottom fish," but the hardest part is actually waiting. Honestly, the market's complexity always exceeds our imagination; those who bet based on a single dimension are all big fools. What you're afraid of isn't the fee rate, but whether you've maintained your trading discipline.

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