#数字资产市场动态 What the Funding Rate Tells Us About Mainstream Trading Platforms — The True Market Sentiment Recently

A detail worth noting on January 19: Bitcoin briefly dropped below $92,000. More importantly, according to Coinglass data, whether on CEX or DEX, the funding rates are telling the same story — **the market is collectively turning bearish**.

What exactly is happening? Just look at the major cryptocurrencies. Bitcoin and Ethereum are already showing negative rates, indicating that long positions are paying short positions, a reverse operation. As for smaller coins? The bearish sentiment is even stronger, and the rates are falling more sharply.

Some may ask, what exactly is the funding rate? Simply put: it’s a mechanism set by trading platforms to balance the long and short forces in perpetual contracts. The logic is — when the market is collectively bullish, the rate goes up, and longs pay shorts; when bears dominate, the rate drops, even turning negative. The platform itself doesn’t profit from this; it’s purely used to regulate market sentiment.

How does it look numerically? The baseline rate is 0.01%. When it’s above this, it indicates a bullish market. Once it drops below 0.005%, it’s a clear bearish signal. The current situation is obviously evident.

So after this recent correction, market participants’ attitudes are already clearly reflected in the data — short-term bullish momentum is waning, and cautious sentiment is spreading.