Recently, Bitcoin and Ethereum have experienced some price fluctuations, but based on the funding rates on exchanges, the market sentiment has already changed significantly.

According to Coinglass data from January 10th, after recent adjustments, the funding rates for BTC and ETH on major exchanges and DEXs have returned to neutral levels. In simple terms, this means that the market's outlook on these two main cryptocurrencies is no longer as pessimistic — both bulls and bears have basically reached a consensus.

However, there is an interesting phenomenon: the situation with altcoins is completely different. Many altcoin pairs still show significant negative funding rates, reflecting that market participants continue to hold strong bearish expectations for them.

Let me briefly explain the logic behind funding rates. This rate is a mechanism used by exchanges to balance the long and short sides in perpetual contracts; the exchange itself does not take a fee from this. When the rate exceeds a 0.01% benchmark, it indicates a generally bullish market; below 0.005%, it suggests a bearish outlook. By adjusting this rate, platforms can make the contract prices more aligned with spot prices, preventing significant deviations.

Overall, the funding rates for mainstream cryptocurrencies have bottomed out, and the extreme bearish sentiment in the market is easing. However, the altcoin market still seems to be stuck in a bear market mentality.