Bitcoin and Ethereum Futures Funding Rates Turn Negative on Major Exchanges as Market Shifts Bearish

Bitcoin fell below $75,000 on Feb. 2 before rebounding above $78,000 on Feb. 3, while funding rates across major trading platforms turned negative, Coinglass data cited by BlockBeats show. Short positions are now paying funding fees to longs to maintain their positions, with Ethereum's negative funding rates notably deeper than Bitcoin's, reflecting stronger bearish sentiment toward ETH. Funding rates are a fee mechanism used in perpetual contracts to align contract prices with the underlying asset, where readings above 0.01% suggest bullish positioning and levels below 0.005% signal bearish sentiment.