Matrixport: The next wave of copycat market is likely to be accompanied by a continuous increase in funding rates

DeepFlowTech · 2026-01-06T02:47:49+00:00

Matrixport points out that the funding rate of perpetual contracts is an important indicator for identifying cryptocurrency market volatility. Historical data shows that altcoin markets tend to be cyclical, driven by short-term speculation, with funding rates rising during bull markets and quickly turning negative during corrections. Future bull markets will require a more sustained increase in funding rates.

DeepFlowTech

2026-01-06 02:47:49

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Deep Tide TechFlow News, January 6th, Matrixport released a chart today stating, "Perpetual contract funding rates remain one of the most intuitive and effective indicators for identifying abnormal fluctuations in the crypto market. Looking back at the ‘mini bull markets’ of altcoins during March-April 2024 and November 2024, funding rates showed a clear upward trend and even surged at times; during the October 2025 correction, funding rates quickly turned negative, highlighting the market’s deleveraging characteristics.

However, these fluctuations lack persistence: more often, there is a short-term spike followed by a rapid decline. This also indicates that altcoin rallies tend to be phased, driven more by speculative funds. As a reference, under normal circumstances, funding rates usually stabilize around an annualized +5% at a moderate level. Therefore, the next round of altcoin rallies closer to a ‘real bull market’ will likely be accompanied by more sustained increases in funding rates and maintained at a higher-than-normal range for a longer period."

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