The cost of holding long positions dropped 18% over 9 hours - from 0.11% to 0.09%. This indicates declining pressure from aggressive buyers.
TL;DR
Funding rate (commission for holding perpetual futures positions) fell 18% over 9 hours - from 0.11% to 0.09%. Z-score -2.45 shows an extremely low level relative to the 90-day mean. The market has entered Bullish Cooling regime: longs maintain dominance, but leverage demand is collapsing at the $91K price level.
Funding Rate Dynamics
Funding rate shows the cost of holding perpetual futures positions - when positive, longs pay shorts (bullish sentiment). Current dynamics are critical: over 9 hours funding dropped from 0.11% to 0.09% - this is not gradual cooling, but a noticeable, "sharp by historical standards" reset. Meanwhile, BTC price holds steady at $90.8K-$91.6K without significant correction, which reduces the probability of Panic Selling. This means holding a long position has become substantially cheaper; this movement profile most often corresponds to closing of overleveraged longs rather than a sharp influx of shorts.
Key indicator - Z-score -2.45: funding is 2.5 standard deviations below the 90-day mean. Such extremes (Z-score < -2) most often appear in two scenarios: (1) completion of an overleveraged rally before consolidation (current scenario), or (2) funding reset before a fresh leg up. The divergence between the 7-day trend (0.09%) and 30-day baseline (0.52%) shows how aggressively funding is cooling.
Bullish Cooling regime: funding is still positive (longs dominate), but rapid decline indicates closing of overleveraged positions. Trend direction: DECELERATING - 7-day trend dropped more than 80% relative to 30-day baseline, triggering classification of aggressive deceleration.
FAQ
What does an 18% funding drop mean with stable price?
This is deleveraging, not panic. Funding at 0.09% per event is still positive (longs dominate), but overleveraged positions are aggressively closing.
CONCLUSIONS
Funding rate is in rapid cooling mode (Bullish Cooling): 18% drop over 9 hours from 0.11% to 0.09% with Z-score -2.45 indicates aggressive deleveraging of overleveraged long positions.