Have you noticed? The funding rate of $BNC has just surged to 27.59%—what does that even mean? Annualized, it’s almost 100%. Long positions are squeezed so tightly it’s like morning-rush subway—packed.
I’ve been trading perpetual contracts for quite a while. Every time I see a coin with a sudden explosion in positive funding, my first reaction is to run. Longs are rushing to open positions, and nobody wants to short. That usually means retail traders are collectively bullish—and this is often the point where the main players start harvesting. I’ve been burned like this on other coins before. In the week when funding rates reach above 20%, the price usually starts dumping from high levels.
Now look at ACE, ONT, and SAND—these have negative funding rates ranging from -15% to -24%, with shorts piling up. That might not necessarily be a bad thing. Negative funding means shorts are effectively subsidizing longs. If the overall market holds steady, these shorted coins may actually be more likely to catch up with a rebound.
As for BTC, its funding rate is 0.91%, which is still fairly healthy. It’s up 2% today, trading sideways between 80848 and 78200, with volume at 1.37B. It’s an uptrend with shrinking volume—neither side seems to have really pushed.
Arbitrage traders are probably doing some cross-market brick-laying on BNC right now. I’ve run funding-rate arbitrage a few times—the returns really are tasty. But you have to keep a close eye on price action, because if it moves against you, losses can rack up quickly.
How long do you think a positive funding rate like $BNC can last? Can the bulls hold on?
#Write2Earn #Crypto
⚠️ Personal opinion only, not investment advice.
I’ve been trading perpetual contracts for quite a while. Every time I see a coin with a sudden explosion in positive funding, my first reaction is to run. Longs are rushing to open positions, and nobody wants to short. That usually means retail traders are collectively bullish—and this is often the point where the main players start harvesting. I’ve been burned like this on other coins before. In the week when funding rates reach above 20%, the price usually starts dumping from high levels.
Now look at ACE, ONT, and SAND—these have negative funding rates ranging from -15% to -24%, with shorts piling up. That might not necessarily be a bad thing. Negative funding means shorts are effectively subsidizing longs. If the overall market holds steady, these shorted coins may actually be more likely to catch up with a rebound.
As for BTC, its funding rate is 0.91%, which is still fairly healthy. It’s up 2% today, trading sideways between 80848 and 78200, with volume at 1.37B. It’s an uptrend with shrinking volume—neither side seems to have really pushed.
Arbitrage traders are probably doing some cross-market brick-laying on BNC right now. I’ve run funding-rate arbitrage a few times—the returns really are tasty. But you have to keep a close eye on price action, because if it moves against you, losses can rack up quickly.
How long do you think a positive funding rate like $BNC can last? Can the bulls hold on?
#Write2Earn #Crypto
⚠️ Personal opinion only, not investment advice.