Do you have this feeling—just as you scroll past a bearish candle with a big volume drop, your first reaction in your heart is “this thing is finished,” but when you take another look at the funding rate, you realize the shorts are actually already paying and waiting to close their positions?
This round of $G was dumped from 0.015134 all the way down to 0.00662, a drop of -31.93%, with trading volume of 564 million. The vibe of a high-volume liquidation-style sell-off is very strong. But the key isn’t how big the drop is—it’s that the funding rate is stuck at -0.2790%. Based on 8-hour settlement, the per-period cost is -0.28U per 100U, daily annualized is -0.84%, and the annualized figure directly lands at -95.3%. The shorts’ holding cost is outrageously high. With this kind of funding-rate structure, the momentum to keep dumping will get weaker and weaker.
From a volume-price perspective: a high-volume selloff plus an extremely negative funding rate = a classic case of crowded shorts.
#G
This round of $G was dumped from 0.015134 all the way down to 0.00662, a drop of -31.93%, with trading volume of 564 million. The vibe of a high-volume liquidation-style sell-off is very strong. But the key isn’t how big the drop is—it’s that the funding rate is stuck at -0.2790%. Based on 8-hour settlement, the per-period cost is -0.28U per 100U, daily annualized is -0.84%, and the annualized figure directly lands at -95.3%. The shorts’ holding cost is outrageously high. With this kind of funding-rate structure, the momentum to keep dumping will get weaker and weaker.
From a volume-price perspective: a high-volume selloff plus an extremely negative funding rate = a classic case of crowded shorts.
#G