Mainstream coin funding rates are declining across the board, and market sentiment is bearish.

【Blockchain Rhythm】On December 18th, Coinglass data shows that the funding rates across major exchanges’ spot and derivatives markets are generally declining, indicating a clear retreat in market bullish enthusiasm.

Let’s briefly explain what funding rates are. In perpetual contracts, both long and short sides need to balance through funding fees. When longs are dominant, they pay shorts; conversely, when shorts are more prevalent, they subsidize longs. This mechanism helps keep the contract price aligned with the spot price, and exchanges do not take a cut.

Specifically, a funding rate of 0.01% is considered the baseline. Exceeding this indicates strong bullish sentiment; dropping below 0.005% typically signals a bearish trend. Currently, according to the attached data, mainstream cryptocurrencies are generally operating at low funding rates, reflecting that market participants’ willingness to short is currently dominant. In this situation, traders holding long positions need to bear the pressure of the funding rate.