Recently, the cryptocurrency market has experienced quite a bit of volatility, but from the perspective of funding rates, the situation is quietly changing. According to Coinglass data, as of January 10th, the funding rates on major exchanges and DEX platforms for BTC and ETH have returned to neutral levels, and the market is no longer broadly bearish on these two main cryptocurrencies.

However, the situation is not so optimistic—altcoins are still struggling, with many altcoins under the pressure of negative funding rates.

Here's a simple explanation of what funding rates are. In perpetual contracts, exchanges set this rate to balance the contract price with the spot price. It is essentially a mechanism for transferring funds between long and short traders, not a fee charged by the exchange, but used to adjust traders' costs or profits.

Understanding market sentiment through numbers:
- A rate of 0.01% is considered neutral
- Above 0.01% indicates a bullish market
- Below 0.005% generally signals a bearish outlook

Mainstream coins have stabilized, but altcoins are still struggling—this is the true reflection of the current market.