DWF Labs Co-founder Andrei Grachev Signals Potential Bear Market as Negative Crypto Funding Rates Return

• Andrei Grachev of DWF Labs warns of a possible bear market as negative funding rates return.
• Over 30% of assets with negative funding rates could signal a buying opportunity using a DCA strategy.
• Recent metrics show a spike in negative funding rates, hinting at market volatility ahead.

“Market activation and negative funding rates are finally back,’ tweeted Andrei Grachev, co-founder of DWF Labs, suggesting a potential shift towards a bear market. 

While overall liquidity is still in recovery, negative funding rates across major centralized exchanges reflect a growing sense of pessimism among traders.

As per on-chain data, most mainstream coins are seeing funding rates below 0.005%. However, historical data reveals that when more than 30% of assets show negative funding rates simultaneously, it presents the chance to employ dollar-cost averaging (DCA) strategies. This analysis is based on the negative funding rates on both Bybit and Binance perps at any given time.

Why Are Negative Funding Rates Bearish?

Negative funding rates occur when short positions dominate the market, reflecting bearish sentiment. 

Grachev’s comments on X emphasized that the…

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