Mainstream coin funding rates are returning to neutral, but these coins still lean bearish.

【BlockBeats】After a recent wave of market rebound, the funding rates in the crypto trading market have shown interesting changes. Based on data from January 14th, major cryptocurrencies such as BTC, HYPE, BCH, and ZEC still maintain a somewhat bearish funding rate. However, overall, the funding rates across major trading platforms are gradually returning to neutral levels, indicating that the forces of bulls and bears are becoming more balanced.

Speaking of funding rates, many people may not be very familiar with this concept. Simply put, it is a mechanism in the perpetual contract market—by exchanging funds between long and short traders, it ensures that the contract price does not deviate too far from the underlying asset price. The trading platforms themselves do not profit from this fee; the rate is purely to regulate market supply and demand.

How to interpret funding rates specifically? When the rate reaches 0.01%, it is considered the baseline level. A rate above 0.01% indicates a generally bullish market, with stronger buying pressure; conversely, when the rate drops below 0.005%, it suggests a bearish market sentiment, with bears in control. By observing this indicator, traders can better understand the current market sentiment and make more informed trading decisions.