$BNC fell 12.094% in the past 24 hours, with a quote of 4.768. At the same time, the funding rate remains at 0.00080540, meaning longs are still paying. While the price is moving down, the funding rate hasn’t turned negative; this structure indicates leveraged longs have not yet been liquidated.
In terms of the funding rate mechanism, 0.0008 means that longs have to pay shorts their position cost every 8 hours. The further the price drops, the more their actual losses are squeezed by a double hit: “price decline + ongoing payments.” This often triggers a wave of forced liquidations or position reductions, making it more complex for the price to find a bottom. The Trump trade, as a recent macro variable, has a narrative that can ebb or reverse repeatedly, and any resulting suppression of sentiment toward such TradFi contracts is likely to be more direct.
My view is that the current combination of price and funding rate is unfavorable for leveraged longs. Unless a strong policy catalyst flips expectations, $BNC may still need to work through this portion of unrealized-loss capital. I would choose to wait and observe unless both of these conditions occur at the same time: first, the funding rate quickly drops to zero or even turns negative, indicating that the long unwinding wave may be over; second, the price consolidates above 4.5 with trading volume clearly declining. Until then, I won’t catch a falling knife.
Trading tag: #TradFi #链上美股 #BNC
Where do you think this assessment is most likely to be wrong?
In terms of the funding rate mechanism, 0.0008 means that longs have to pay shorts their position cost every 8 hours. The further the price drops, the more their actual losses are squeezed by a double hit: “price decline + ongoing payments.” This often triggers a wave of forced liquidations or position reductions, making it more complex for the price to find a bottom. The Trump trade, as a recent macro variable, has a narrative that can ebb or reverse repeatedly, and any resulting suppression of sentiment toward such TradFi contracts is likely to be more direct.
My view is that the current combination of price and funding rate is unfavorable for leveraged longs. Unless a strong policy catalyst flips expectations, $BNC may still need to work through this portion of unrealized-loss capital. I would choose to wait and observe unless both of these conditions occur at the same time: first, the funding rate quickly drops to zero or even turns negative, indicating that the long unwinding wave may be over; second, the price consolidates above 4.5 with trading volume clearly declining. Until then, I won’t catch a falling knife.
Trading tag: #TradFi #链上美股 #BNC
Where do you think this assessment is most likely to be wrong?