BTC funding rate returns to neutrality, an overview of market sentiment changes

【Blockchain Rhythm】After the market fluctuations on December 19th, the funding rate data across major exchanges (including centralized and decentralized platforms) have shown divergence. Overall, the market remains bearish, but it is noteworthy that some trading pairs, represented by BTC, have gradually returned to neutral levels.

Specific data shows that the funding rates of major cryptocurrencies vary significantly—some still maintain negative values, while others are close to zero. This divergence reflects the complexity of market sentiment.

A simple explanation of the funding rate logic: it is a balancing mechanism in perpetual contracts. Trading platforms set this rate to allow direct transfers between long and short traders, rather than charging the platform. The purpose is to keep the contract price closely aligned with the spot price.

The criteria for judging the rate are straightforward: a rate of 0.01% is the baseline; exceeding 0.01% indicates a bullish market; below 0.005% suggests a strong bearish sentiment.

As of December 19th, although the overall trend remains bearish, the neutral performance of the BTC rate hints that large funds might be adjusting their positions or observing, which could have some implications for future movements.