A post-market data point from July 5 is quite interesting: KAIA funding rate at -0.157%, or -172% annualized. The odds are stacked in one direction, and shorts are paying a hefty price to hold their positions.
Such a deeply negative funding rate can only mean one of two things: spot supply is tight, or someone is betting real money that the price will fall. If traders on the exchange are reluctant to open short positions, it may be because they fear a short squeeze, or because long positions are heavily concentrated. If things get pushed to the limit, it may only be a matter of time. This data tells us that this is not a “good” entry point right now—but don’t rush in to catch a falling knife either.
Short sellers, take note: price action ≠ trend. $KAIA #资金费率 #ContractWatch
Such a deeply negative funding rate can only mean one of two things: spot supply is tight, or someone is betting real money that the price will fall. If traders on the exchange are reluctant to open short positions, it may be because they fear a short squeeze, or because long positions are heavily concentrated. If things get pushed to the limit, it may only be a matter of time. This data tells us that this is not a “good” entry point right now—but don’t rush in to catch a falling knife either.
Short sellers, take note: price action ≠ trend. $KAIA #资金费率 #ContractWatch