Let’s calculate the cost of holding a position: $US . The current funding rate is -0.0678%, settled every 4 hours, which works out to an annualized rate of about 148.5%.
In other words, short sellers are paying the longs every funding period, and the longer they hold their shorts, the more pressure they’re under. Once the price stops falling, short covering could push it higher.
Which side do you think will crack first?
#US
Just sharing my thoughts—not investment advice.
In other words, short sellers are paying the longs every funding period, and the longer they hold their shorts, the more pressure they’re under. Once the price stops falling, short covering could push it higher.
Which side do you think will crack first?
#US
Just sharing my thoughts—not investment advice.