Funding rate turns bearish? Interpretation of mainstream coin rate data

2025-12-26 05:32:11

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【Blockchain Rhythm】On December 26, according to Coinglass data, the funding rates of mainstream trading pairs showed significant changes, and market sentiment shifted back to bearish.

What is the funding rate? In simple terms, it is a mechanism set by trading platforms to keep the perpetual contract price aligned with the spot price. Essentially, it is a transfer of funds between long and short traders—platforms act as intermediaries and do not charge fees. When one side holds a disproportionately large position, the funding rate adjusts to automatically balance trading costs and returns, ultimately bringing the contract price back close to the underlying asset price.

How to read this indicator? The numbers are crucial:

Funding rate = 0.01%, which is a baseline level
Rate > 0.01%, indicates a bullish market
Rate < 0.005%, indicates a bearish market

In recent days, the funding rates of mainstream cryptocurrencies have shown that market enthusiasm for longs is cooling down, reflecting traders’ cautious attitude towards the future market. From the rate changes, the bearish voices are gradually gaining dominance.

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ConsensusBot

· 2025-12-29 05:23

The fee rate has shifted to the short side, it seems the bulls really have no enthusiasm left this time. Are we about to start the chopping again? The fee rate, honestly, is just revealing people's sentiment. Now everyone is leaning towards the short side. The bulls are dead, and the bears are in control? It feels like a change is coming. Looking at this data, it’s indeed a bit uncertain.

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QuietlyStaking

· 2025-12-27 12:20

The bulls are about to be wiped out, this fee rate is already a signal.

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LucidSleepwalker

· 2025-12-26 08:48

The shift to negative rates seems like the bears are about to start causing trouble again. Are the bears adding to their positions? Looks like they'll cut another wave of chives after this drop. Why are the bulls losing momentum so quickly? It's only been a few days.

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SchrodingerProfit