Funding rates turn negative, is the market bearish? Don't let emotions precede judgment
Latest data shows that the funding rates of mainstream CEXs and DEXs have generally turned negative, and market sentiment is gradually shifting towards being conservative or even bearish. According to CoinGlass data, the current funding rates for BTC are mostly below 0.005%, with some platforms even approaching 0%, indicating that the market is entering a typical phase of 'increasing bearish sentiment.'
Funding rates are the barometer of the futures market — when the rate is negative, short sellers have to pay interest to long buyers, indicating that more people are becoming bearish, while the bulls become a 'scarce resource.'
Don't underestimate this subtle change. It often signifies two things:
Most people begin to fear a decline in future prices, leaning towards conservative trading;
In a market with extreme emotions, the seeds of reversal are often sown.
History repeatedly proves: real opportunities are often hidden during extreme emotional times.
So is it time to be bearish? Not necessarily.
Funding rates are indicators, not scripture; judging the market can never rely solely on a set of data.
More importantly, it depends on how you calmly make decisions when 'others abandon, I take.'
Continued attention: $TRB $SOPH $A
