Recently, the split sentiment in the crypto market has been clearly reflected in funding rates. According to on-chain data platforms, the trend of funding rates on mainstream exchanges and DEXs reveals an interesting fact: there are hardly any more bearish views on BTC and ETH, as their rates have returned to neutral levels across major platforms; in contrast, altcoins are still stuck in a deep negative funding rate trap, essentially being collectively shorted by a large number of traders.

Here's a simple explanation of the logic behind funding rates. In futures trading, a positive rate indicates longs are paying shorts, which suggests a bullish market; a negative rate means shorts are earning money, indicating a bearish market. Currently, the funding rates for BTC and ETH are no longer showing extreme emotions—both sides are becoming cautious, and the previous frenzy of either extreme bullishness or bearishness has faded.

However, altcoins are still caught in a negative funding rate cycle. Institutions and large funds clearly accept one fact: mainstream coins can hold their ground, but altcoins cannot. After all, BTC and ETH can be bought or sold regardless of market moves because liquidity is there; but when it comes to altcoins, any slight disturbance causes funds to rush out instantly—especially those projects that previously experienced huge gains, which have now become prime targets for shorting.

The overall market attitude is becoming interesting: big funds are tightly holding onto mainstream coins without letting go, while retail investors' money is increasingly being attracted to shorting altcoins. This contrast actually reflects a deeper shift—risk aversion is overtaking speculative impulses, and the market is quietly moving towards stability.