I noticed an interesting signal on CEX and DEX — funding rates have significantly decreased. When Bitcoin recently rose to $77,500, I expected to see more aggressive positions from traders, but instead, I see a massive return to neutral rates. This indicates that the bearish sentiment that was previously present has clearly weakened.

For those unfamiliar: the funding rate on CEX is essentially a fee between traders on perpetual contracts. When it’s above 0.01%, it indicates a bullish sentiment, and when below 0.005%, it indicates a bearish one. Currently, most exchanges show rates close to the baseline, suggesting some neutrality in the market.

This is actually an interesting moment — the market seems to be clearing out extreme positions. On major CEXs, Coinglass data shows a steady trend toward balance. Perhaps traders are waiting for the next catalyst rather than entering positions recklessly. I’m watching this indicator — it often provides a good signal of the true market sentiment, rather than what’s being posted on social media.