Crypto funding rates have returned to a near-neutral level, signaling a cautiously optimistic outlook across major exchanges. This shift reflects a growing interest from institutional investors as well as stabilization following recent market volatility. Experts suggest this balance could signify the beginning of a steady recovery phase for the crypto market. 0.007% is currently the funding rate on Bitcoin futures, showing no sign of excessive leverage. 2025 has seen an influx of investment flows from U.S. institutions, reaching over $7.5 billion and bolstering confidence in the sector. This increase coincides with the US-China tariff pause, which has positively impacted risk assets overall. Market activity is reflected by a notable Bitcoin outflow of 9,739 BTC from Coinbase just one day after the tariff pause announcement, demonstrating increased institutional participation.