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$BTC $ETH $GRIFFAIN #合约 #合约交易 #LiveTradingRecord
🗓 10/8 07:30 CST
No. A negative funding rate only means that shorts are more crowded at this moment and are paying longs. It doesn’t mean prices are going to fall.
To be clear, funding rates reflect which side—longs or shorts—is paying the other. When the rate is positive, longs pay shorts; when it’s negative, shorts pay longs. It describes positioning, not a price forecast. Treating it as a bearish signal is a logical leap.
Let’s look at the current readings. BTC’s funding rate for this period is -0.00135%, and ETH’s is -0.00355%—both only slightly negative. Now look at some of the most crowded shorts: GTC is at -0.10082%, but is up 23.48% over 24 hours; NMR is at -0.10769% and down 6.05%; ORCA is at -0.08815% and down 8.50%. The price action varies despite similarly deep negative funding rates, showing that the rate itself doesn’t determine direction.
What it really signals is this: when one side’s positioning becomes extremely crowded, a move in the opposite direction can easily liquidate that side! Use funding rates to assess crowding; for direction, look at price action and market structure.
Are you making money in this market today, or getting worn down by it?
—— Alpha Quantitative Technology
The above is a market update and personal opinion. It does not constitute investment advice or guarantee returns. Futures contracts involve leverage. Make your own decisions; you are responsible for any gains or losses.
$BTC $ETH $GRIFFAIN #合约 #合约交易 #LiveTradingRecord
🗓 10/8 07:30 CST
No. A negative funding rate only means that shorts are more crowded at this moment and are paying longs. It doesn’t mean prices are going to fall.
To be clear, funding rates reflect which side—longs or shorts—is paying the other. When the rate is positive, longs pay shorts; when it’s negative, shorts pay longs. It describes positioning, not a price forecast. Treating it as a bearish signal is a logical leap.
Let’s look at the current readings. BTC’s funding rate for this period is -0.00135%, and ETH’s is -0.00355%—both only slightly negative. Now look at some of the most crowded shorts: GTC is at -0.10082%, but is up 23.48% over 24 hours; NMR is at -0.10769% and down 6.05%; ORCA is at -0.08815% and down 8.50%. The price action varies despite similarly deep negative funding rates, showing that the rate itself doesn’t determine direction.
What it really signals is this: when one side’s positioning becomes extremely crowded, a move in the opposite direction can easily liquidate that side! Use funding rates to assess crowding; for direction, look at price action and market structure.
Are you making money in this market today, or getting worn down by it?
—— Alpha Quantitative Technology
The above is a market update and personal opinion. It does not constitute investment advice or guarantee returns. Futures contracts involve leverage. Make your own decisions; you are responsible for any gains or losses.