Funding rate returns to neutral, market shifts from bearish to wait-and-see

[Crypto World] On December 8, Coinglass data revealed an interesting phenomenon—a recent market rebound has led to an increase in “bottom-fishing” voices on social media, and funding rates on major trading platforms have also changed accordingly.

From major centralized exchanges to decentralized platforms, funding rates have shifted from previously bearish levels to a neutral, wait-and-see range. The funding rates of mainstream coins have basically returned to equilibrium, and the market’s long-short battle has entered a relatively calm phase.

A brief explanation of the funding rate indicator: it is actually a mechanism for fund exchange between longs and shorts in perpetual contracts. The platform does not take a cut; it is purely used to balance the price difference between contracts and spot.

How should you interpret this data? 0.01% is the neutral baseline. If it is higher than this value, it means more people are going long and are willing to pay the shorts; if it is lower than 0.005%, the shorts have the advantage and need to compensate the longs. Now that most coins have returned to the neutral range, it means the market is in a wait-and-see state—neither rushing to chase the rally nor continuing to panic.