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$BTC $ETH $NEAR #合约 #合约交易 #LiveMarketLog
🗓 10/9 11:37 CST
No. A negative funding rate only means that shorts are more crowded and are paying longs. It does not predict that the coin will fall!
The way I see it, the mechanism is simple. Perpetual contracts settle funding rates at regular intervals: when the rate is positive, longs pay shorts; when it’s negative, shorts pay longs. It tells you which side is more crowded, not which way the price will move.
Looking at this period’s actual readings: BTC is at +0.00636%, with longs slightly more crowded. Among the most crowded short positions, ERA is at -0.15191%, yet it’s down just 2.48% over 24 hours; SKL is at -0.25712%, but it’s up 11.72% over 24 hours; MINA is at -0.37861%, and it’s down 17.10% over 24 hours. The same negative funding rate, but completely different price moves—that’s the answer.
What’s really worth watching is the risk of a sharp reversal after positioning becomes extremely crowded—not using it as a signal for whether prices will rise or fall!
Are you seeing money flow in, or is it just leverage increasing?
—— Alpha Quantitative Technology
The above is a market log and personal opinion. It does not constitute any trading advice, nor is any profit guaranteed. Contracts involve leverage. Make your own decisions and assume responsibility for any gains or losses.
$BTC $ETH $NEAR #合约 #合约交易 #LiveMarketLog
🗓 10/9 11:37 CST
No. A negative funding rate only means that shorts are more crowded and are paying longs. It does not predict that the coin will fall!
The way I see it, the mechanism is simple. Perpetual contracts settle funding rates at regular intervals: when the rate is positive, longs pay shorts; when it’s negative, shorts pay longs. It tells you which side is more crowded, not which way the price will move.
Looking at this period’s actual readings: BTC is at +0.00636%, with longs slightly more crowded. Among the most crowded short positions, ERA is at -0.15191%, yet it’s down just 2.48% over 24 hours; SKL is at -0.25712%, but it’s up 11.72% over 24 hours; MINA is at -0.37861%, and it’s down 17.10% over 24 hours. The same negative funding rate, but completely different price moves—that’s the answer.
What’s really worth watching is the risk of a sharp reversal after positioning becomes extremely crowded—not using it as a signal for whether prices will rise or fall!
Are you seeing money flow in, or is it just leverage increasing?
—— Alpha Quantitative Technology
The above is a market log and personal opinion. It does not constitute any trading advice, nor is any profit guaranteed. Contracts involve leverage. Make your own decisions and assume responsibility for any gains or losses.