Market shift based on funding rates: BTC and ETH have moved away from bearish sentiment, but altcoins still carry risks

【Blockchain Rhythm】According to the latest data from Coinglass, the crypto market has experienced significant changes after recent volatility. The funding rates on major exchanges and DEX platforms indicate that the market’s bearish sentiment towards BTC and ETH has diminished, and currently, the funding rates across major platforms have returned to neutral levels.

However, it is worth noting that this optimistic attitude does not cover the entire market. The altcoin sector still exhibits large-scale negative funding rates, reflecting traders’ continued caution towards these tokens. The specific funding rate data for each major coin is shown in the above chart.

In simple terms, the funding rate is a mechanism set by crypto trading platforms to maintain the balance between perpetual contract prices and spot prices. This fee circulates between long and short traders and does not flow to the platform, serving to adjust position costs.

The standard for judgment is as follows: a funding rate of 0.01% is the baseline. Rates above 0.01% indicate a bullish market sentiment, while rates below 0.005% suggest a bearish market tendency. Based on current data, major cryptocurrencies have entered a relatively balanced state, but negative funding rates for altcoins remain high, indicating that caution is still needed when dealing with these assets.