#夏日创作营 Many people only focus on whether BTC is rising, but they ignore a more important signal.

Funding rates are telling us that bearish sentiment in the market is weakening.

When funding rates stay consistently low, it suggests that more and more people are willing to short, and market sentiment remains overly pessimistic.

And now, as BTC regains strength, the funding rates on mainstream CEXs and DEXs have started to return to normal ranges.

This indicates that the shorts are still there, but their advantage is no longer as clear as before.

More importantly, the biggest difference between this rally and the past’s largest rallies is that:

Funding rates have not surged rapidly.

This shows the market hasn’t seen a wave of high-leverage chasing, nor has it entered a FOMO phase.

This kind of rally is actually healthier.

Combine it with the data seen in recent weeks:

ETF funding continues to flow in;
Coinbase has maintained negative premiums for 60 straight days, yet there has always been someone to absorb them;
BlackRock keeps expanding its crypto product layout;
altcoins begin to show sector rotation;
funding rates also haven’t overheated.

All these signals point in the same direction:

Market structure is improving, not emotions going crazy.

What really needs vigilance isn’t funding rates being too low.

It’s the day when funding rates suddenly spike—when everyone starts lining up on a bullish view and leverage rapidly piles up.

That’s when the market is most likely to see large volatility.