My stop-loss got hit. I shorted $BTC 85600 yesterday, and when I woke up this morning, I saw I’d been buried. It’s really tough being a bear in this market.
I checked the funding rate data for perpetuals and noticed something interesting: every coin I’ve been watching has a negative funding rate, and some of them are shockingly negative.
$CARV has a funding rate of -92.66%—that’s absurdly high. A negative funding rate of -10% to -20% is normally enough to mean the shorts are crowded, but this one is over -90%. That means the short side is packed. This kind of extreme negative funding usually means whales or smart money are shorting, and retail traders who follow them often end up getting squeezed. I’ve learned that the hard way before: when a tiny altcoin like CARV bounces, it plays dirty—it can shoot up dozens of percentage points in half an hour, and the shorts get buried alive.
HANMI, BWET, LG ELECTRONONICS, and ONE also have funding rates between -24% and -58%, which likewise puts them in extremely crowded short territory. With so many people shorting, the risk of a reversal is significant.
BTP’s funding rate is now just -0.001%, much more normal by comparison. Funding rates on large-cap alts are too transparent, and institutions are all watching them, so there’s no money to be made from funding arbitrage.
Here’s how I approach arbitrage: if I think a negatively funded coin isn’t about to get squeezed, I’ll go long on the contract and short the USDT-margined side to collect funding. The daily return can reach 0.5%–1%. But you have to manage your position size—the market loves to punish oversized positions.
The question now is: with all the shorts crowded on one side, who’s going to come to the rescue?
#Write2Earn #Crypto
⚠️ These are my personal opinions and not investment advice.
I checked the funding rate data for perpetuals and noticed something interesting: every coin I’ve been watching has a negative funding rate, and some of them are shockingly negative.
$CARV has a funding rate of -92.66%—that’s absurdly high. A negative funding rate of -10% to -20% is normally enough to mean the shorts are crowded, but this one is over -90%. That means the short side is packed. This kind of extreme negative funding usually means whales or smart money are shorting, and retail traders who follow them often end up getting squeezed. I’ve learned that the hard way before: when a tiny altcoin like CARV bounces, it plays dirty—it can shoot up dozens of percentage points in half an hour, and the shorts get buried alive.
HANMI, BWET, LG ELECTRONONICS, and ONE also have funding rates between -24% and -58%, which likewise puts them in extremely crowded short territory. With so many people shorting, the risk of a reversal is significant.
BTP’s funding rate is now just -0.001%, much more normal by comparison. Funding rates on large-cap alts are too transparent, and institutions are all watching them, so there’s no money to be made from funding arbitrage.
Here’s how I approach arbitrage: if I think a negatively funded coin isn’t about to get squeezed, I’ll go long on the contract and short the USDT-margined side to collect funding. The daily return can reach 0.5%–1%. But you have to manage your position size—the market loves to punish oversized positions.
The question now is: with all the shorts crowded on one side, who’s going to come to the rescue?
#Write2Earn #Crypto
⚠️ These are my personal opinions and not investment advice.