Family, I just looked at the latest funding rate trend, and I have to say—this is not a gentle market shift; it's clearly the bearish camp sounding the alarm and preparing for big moves! Just a few days after Bitcoin's flash crash and rebound on Christmas Eve, the funding rates across major exchanges and DEX platforms have collectively turned downward, entering a firmly bearish zone. Except for some platforms where Bitcoin and Ethereum are still holding near the neutral line, other cryptocurrencies—especially small-cap coins—are experiencing frighteningly negative rates. Honestly, if you haven't finished reading this and are already thinking about bottom fishing, I advise you to stay calm—otherwise, you might really struggle to make ends meet by the end of the year.

Let me briefly explain what funding rates are for new friends; experienced traders can skip to the main points. Funding rate, simply put, is the "barometer of market sentiment" in the perpetual contract market—the fee exchanged between long and short positions. A rate exceeding 0.01% indicates that longs are in control, and they have to pay shorts; if it's below 0.005%, it means shorts dominate, and they are earning money. Now? Except for some platforms where Bitcoin and Ethereum are still hovering near the boundary, all major platforms are plunging, and small-cap coins are in a deep red sea of negative rates. What does this indicate? It shows that almost all traders are betting on a price decline, even willing to spend money to borrow coins for shorting. Such unified action is rare this year.

Some might think, it's just a rate number—why get so tense? I can only say you're oversimplifying. When you combine this data with the recent market situation, this bearish outlook is no empty talk. Bitcoin experienced a big plunge before and after Christmas, and although it quickly recovered, the panic wave in the market hasn't fully subsided. From technical analysis to sentiment, the bears are well prepared. If you're still thinking of catching falling knives now, you better consider the risk factors carefully.