Data from Glassnode reveals that crypto market funding rates have plummeted to levels unseen since the lows of late 2022, marking one of the most significant leverage resets in history. This rapid decrease follows last week’s massive $20 billion liquidation event across cryptocurrency derivatives markets. The chart shows a dramatic shift in funding rates on major exchanges, with Bitcoin’s perpetual futures funding rate dropping to levels unseen in over three years, while altcoin median rates also experienced a sharp decline. This deep negative funding event is believed by analysts to indicate a cyclical market correction as long positions are liquidated and speculative demand evaporates. Notably, the current trend mirrors the 2022 deleveraging period that paved the way for a multi-month recovery.