Funding Rate vs Market Sentiment

A periodic payment exchanged between long and short holders of a perpetual futures contract, calculated to keep the contract price anchored to the spot price; positive funding means longs pay shorts; negative funding means shorts pay longs; typically settled every 8 hours on major exchanges.

The collective emotion and bias of market participants toward an asset, typically expressed as bullish or bearish; reflected in positioning, volatility, and behavior patterns but difficult to measure objectively.