Let’s discuss data that’s easy to misunderstand.
In these days, someone told me that shorting $BTC means making money; the funding rate is positive—so, a positive funding rate means that longs pay shorts.
But don’t get too excited yet: for three of the main coins, the funding rate is only moderately positive, just a few thousandths, and it hasn’t reached an extreme.
Since the rate isn’t at an extreme, the market on both sides isn’t overloaded—there’s no fuel for a short squeeze, and no panic from longs giving up positions.
The real signal to act is when the funding rate reaches an extreme—then someone can’t hold on.
Right now, things are calm. Earning such a rate isn’t a reason to chase a short, but a reason to wait patiently for a breakout.
You need to look at the data in context, not just whether it’s a plus or a minus.
$BTC
#BTCBreaks80K
In these days, someone told me that shorting $BTC means making money; the funding rate is positive—so, a positive funding rate means that longs pay shorts.
But don’t get too excited yet: for three of the main coins, the funding rate is only moderately positive, just a few thousandths, and it hasn’t reached an extreme.
Since the rate isn’t at an extreme, the market on both sides isn’t overloaded—there’s no fuel for a short squeeze, and no panic from longs giving up positions.
The real signal to act is when the funding rate reaches an extreme—then someone can’t hold on.
Right now, things are calm. Earning such a rate isn’t a reason to chase a short, but a reason to wait patiently for a breakout.
You need to look at the data in context, not just whether it’s a plus or a minus.
$BTC
#BTCBreaks80K