Funding Rate Surges, These 5 Cryptos Signal a Short Signal

Updated

December 22, 2025

Gambar Funding Rate Surges, These 5 Cryptos Signal a Short Signal

Jakarta, Pintu News – The crypto market in December 2025 showed increasing selling pressure, reflected by funding rates on major exchanges that were below neutral levels. This condition signals the dominance of short positions in perpetual futures contracts, including in derivatives trading such as Pintu Futures.

Funding rates below 0.005% generally reflect a cautious or bearish market sentiment, while indicating that traders are taking more short positions than long, which could trigger short-term selling pressure on major cryptocurrencies.

Bitcoin (BTC): Dominance of Bearish Sentiment

Bitcoin’s funding rate in perpetual contracts remains below the neutral level of around 0.01%, signaling the dominance of bearish positions in the derivatives market, including on platforms like Pintu Futures. This reflects stronger selling pressure and traders’ caution in maintaining long positions, as BTC prices weakened after a previous rally failed to hold in early December.

As the largest crypto asset, BTC’s low funding rate is an indicator of general market sentiment, showing traders tend to hold long exposure and favor short positions in the short term.

Ethereum (ETH): Funding Rate Signals Bearish Tightening

fusaka upgrades ethereum — Generated by AI

Ethereum’s funding rate shows a similar pattern to Bitcoin ‘ s, with relatively low funding rates across major exchanges, including derivatives markets such as Pintu Futures. This indicates that traders are opening more short positions than long on ETH perpetual contracts, reflecting heightened risk sentiment and a lack of confidence in the potential for a near-term rally.

ETH price volatility and macro pressure on risky assets encourage defensive strategies, so short-term selling pressure could potentially hold back ETH price upward momentum in the next few sessions.

Solana (SOL): Funding Rate Pressure and Volatility

Funding rates for Solana also showed a bearish bias in the futures market, with many exchanges recording funding rates below the neutral threshold. This suggests that traders are increasing their short positions on SOL, which often reflects a prediction that SOL prices will continue to experience downward pressure. SOL market volatility is often higher than some major assets, which makes funding rates sensitive to shifts in sentiment.

The combination of low funding rates and weak price trends may accelerate selling pressure if liquidity starts to shrink. Short traders can capitalize on this bearish momentum by opening positions in anticipation of further declines. However, such conditions are also prone to short squeeze in the event of a sudden reversal, although in a bear market, the probability of a quick rebound remains low.

Binance Coin (BNB): Short Indications on Perpetual Futures

Binance Coin is also showing signs of bearish sentiment through the low funding rates monitored on major exchanges. Funding rates below neutral levels indicate that traders are more inclined to open short positions against BNB. This selling pressure is likely influenced by continued concerns for the crypto market as a whole, especially when macro drivers struggle to provide clarity of direction.

Traders eyeing short BNB positions may see this as a signal that a price breakout is less likely in the short term. Broadly bearish market conditions usually encourage futures traders to reduce long exposure and increase short exposure. If this pattern continues, selling pressure on BNB could reinforce the downward trend in the coming days.

Also read: These 3 Crypto are Predicted to Set New Record Highs in 2026!

Ripple (XRP): Short Dominance Seen from Funding

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The funding rate for Ripple also shows a similar bearish bias, with shorts dominating over longs. This low funding rate data reflects the predicted downward movement of some market participants in the futures exchanges. Ripple, like many other altcoins, is heavily affected by overall market sentiment, and a negative funding rate indicates increased selling pressure.

The dominant short position on XRP also reflects traders’ caution towards future price direction, where the downside risk is higher than the upside potential. This defensive stance could slow down the price rebound momentum, especially if the market continues to receive macro or technical bearish news. XRP has been one of the major altcoin assets most affected by the bearish funding rate indicator.

Conclusion

Funding rates that surged or remained low across most major crypto perpetual markets in December 2025 reflected the dominance of short positions and short-term bearish sentiment. Assets such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Binance Coin (BNB), and Ripple (XRP) showed funding rate signals that led to selling pressure.

This metric is an important tool for traders to understand the psychology of the derivatives market and assess the bias of short-term price trends. The bearish funding rate environment suggests that the current crypto market is more likely to hold long exposure and capitalize on downward price momentum.

FAQ

What is funding rate in crypto trading?

The funding rate is a periodic charge between long and short traders on perpetual contracts to keep prices close to the spot market.

Why would a soaring funding rate be a short signal?

High or negative funding rates indicate a predominance of short positions and bearish market sentiment.

Does the funding rate always accurately predict price movements?

Not always, but funding rates are often used as an indicator of short-term sentiment in the derivatives market.

Which cryptos are currently showing short signals?

Some of them are Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Binance Coin (BNB), and Ripple (XRP).

Are high funding rates risky for traders?

Yes, this increases the risk of volatility and potential liquidation, especially in the event of countervailing price movements.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

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