The funding rate is warming up, and there are signs of easing bearish sentiment in the market.

On December 1st, there was a subtle change in the market - looking at the funding rates from major exchanges, the previous bearish sentiment seems to be easing.

I checked the data from mainstream platforms, whether it's centralized exchanges or on-chain DEX, the funding rates of mainstream cryptocurrencies are all on the rise. This signal is quite interesting.

In simple terms, this indicator refers to the funding rate, which is a fee that both long and short positions pay to each other in perpetual contracts, without the platform taking a cut. Its purpose is to prevent the contract price from deviating too far from the spot price, acting as an automatic regulator.

Understanding these three values is enough: 0.01% is considered a neutral level, and anything above this indicates that more long positions are willing to pay, suggesting an optimistic market; below 0.005%, it reverses, with short positions prevailing, indicating a general lack of confidence in the market outlook.

So now that the funding rate has warmed up, it at least indicates that market sentiment is not as pessimistic anymore. Of course, the specific trend still needs to be looked at in conjunction with other indicators.