December 18th CEX/DEX Bearish Overall? Funding Rate Data Reveals Current Market Sentiment

【Blockchain Rhythm】Data from December 18th shows that whether it is a centralized exchange (CEX) or a decentralized exchange (DEX), the funding rates of mainstream cryptocurrencies are sending a clear signal—the overall market is in a bearish state. According to real-time tracking by Coinglass, the funding rate levels across major trading pairs are quite “affordable.”

For traders engaging in perpetual contracts, the funding rate is an unavoidable topic. Simply put, it is the mechanism of fund exchange between long and short positions. Exchanges adjust the rates to balance the market, ensuring that the contract prices do not deviate too far from the spot prices. This fee does not go into the exchange’s pocket but flows directly between traders.

How to gauge market sentiment? Just look at the funding rate: when it is around the 0.01% benchmark level, the market is neutral; once the funding rate exceeds 0.01%, it indicates that longs are leveraging up, and the market sentiment is generally bullish; conversely, when the rate drops below 0.005%, shorts are gaining the upper hand, and the market’s bearish outlook begins to dominate.

From the current data, the funding rates of mainstream cryptocurrencies are generally low, which means market participants are quite cautious about recent market trends, and enthusiasm for going long is noticeably lacking.