I just took a look at the data, and there’s some serious stuff going on.
These people are really going all-in on shorting. ERA’s funding rate is -0.98%. What does that mean? Normal futures funding rates usually hover around 0.01%. At -0.98%, shorts have to pay longs nearly 1% in interest every day. That’s not shorting—that’s handing money to the shorts.
MINA is similar, at -0.58%. Short positions are more crowded there than anywhere except ERA. WAL, LA, and MAGIC are also all between -0.2% and -0.3%. They’re all at negative funding rates, and not a single long seems willing to step in and catch the falling knife.
Crowded shorts are often where reversals brew, and an extremely negative funding rate like ERA’s is often the most dangerous spot—shorts can get squeezed as they all rush to close, and the price could suddenly explode upward. A friend of mine shorted ERA before. When the funding rate was -0.7%, he thought he was safe. Then it jumped 15% in half an hour and liquidated him outright.
In a situation like this, funding-rate arbitrage is worth looking into: go long coins with negative funding rates to collect payments, while shorting the opposite contract to hedge. The profits aren’t huge, but the strategy’s strength is its stability.
$BTC , on the other hand, is holding up really steadily. The price is 83068, up just 0.45%, and the funding rate is -0.0005%—almost neutral, with both sides showing restraint.
Shorts are piled up in these coins. Are they setting a trap for people? Shorts, are you nervous?
#Write2Earn #Crypto
⚠️ These are my personal views and do not constitute investment advice.
These people are really going all-in on shorting. ERA’s funding rate is -0.98%. What does that mean? Normal futures funding rates usually hover around 0.01%. At -0.98%, shorts have to pay longs nearly 1% in interest every day. That’s not shorting—that’s handing money to the shorts.
MINA is similar, at -0.58%. Short positions are more crowded there than anywhere except ERA. WAL, LA, and MAGIC are also all between -0.2% and -0.3%. They’re all at negative funding rates, and not a single long seems willing to step in and catch the falling knife.
Crowded shorts are often where reversals brew, and an extremely negative funding rate like ERA’s is often the most dangerous spot—shorts can get squeezed as they all rush to close, and the price could suddenly explode upward. A friend of mine shorted ERA before. When the funding rate was -0.7%, he thought he was safe. Then it jumped 15% in half an hour and liquidated him outright.
In a situation like this, funding-rate arbitrage is worth looking into: go long coins with negative funding rates to collect payments, while shorting the opposite contract to hedge. The profits aren’t huge, but the strategy’s strength is its stability.
$BTC , on the other hand, is holding up really steadily. The price is 83068, up just 0.45%, and the funding rate is -0.0005%—almost neutral, with both sides showing restraint.
Shorts are piled up in these coins. Are they setting a trap for people? Shorts, are you nervous?
#Write2Earn #Crypto
⚠️ These are my personal views and do not constitute investment advice.