Mainstream platforms' funding rates have collectively declined, and the market sentiment shows clear signs of turning bearish.

[Coin World] On December 2nd, Coinglass data revealed an intriguing signal — the funding rates of mainstream exchanges and decentralized platforms have collectively decreased, indicating a markedly bearish market sentiment.

The funding rate is quite an interesting indicator. It is essentially a funding swap game between long and short positions in perpetual contracts, with the platform not taking a cut, purely relying on this mechanism to keep the contract price from deviating too far from the spot price.

How to look at this number? In simple terms:

• 0.01% is a watershed, considered a market neutral state.
• Above this number, it indicates that there are more long positions, and they have to pay the shorts.
• Below 0.005%, this is the current situation - shorts have the upper hand, while longs can actually make money.

Currently, the funding rates of various major coins are generally at low levels, which means that the short-selling power in the market is stronger. In such times, the cost of holding long positions has actually decreased, but the problem is that everyone is not optimistic about the future market, and this signal itself is quite subtle.

Data doesn't lie, but how to interpret it depends on individual ability. A negative funding rate does not necessarily mean a drop, but it at least indicates that the bearish sentiment is stronger now.