Mainstream cryptocurrencies collectively face pressure, and the funding rate signals reveal a bearish market sentiment.

【BlockBeats】The crypto market experienced another decline tonight, with Bitcoin dropping over 0.5% in a short period, approaching recent lows. Ethereum’s decline was even sharper, falling more than 1%, struggling to hold the $2900 support level.

According to on-chain data monitoring, the funding rates on major exchanges and DEXs are generally turning negative—this is a signal worth paying attention to. On a leading exchange, the funding rates for Ethereum and SOL have already turned negative, indicating that market participants’ short-selling enthusiasm is clearly increasing, and long positions are becoming more costly.

To briefly explain what the funding rate is: it is a mechanism for transferring funds between longs and shorts in perpetual contracts, with no commission taken by the trading platform itself. The rate is adjusted to balance the buying and selling forces in the market, making the contract price more aligned with the spot price.

Numerically, 0.01% is a baseline. A rate above 0.01% indicates a bullish market sentiment; conversely, a rate below 0.005% suggests that the bearish voices are outweighing the bullish ones. Currently, most cryptocurrencies’ rates have fallen into negative territory, indicating that short sellers are profiting while longs are burning money—the market’s balance has clearly tilted.

The three major assets BTC, ETH, and SOL are all cooling off simultaneously, with funding rates in the red across the board, amplifying short-term market uncertainty.