I’ve noticed a pattern: when a coin’s contract OI is close to its circulating market cap, the market makers are very unlikely to let its price rise easily.
The reason is simple: excessively high OI means the market makers need more capital to control the market, and the most efficient approach isn’t to pump the price—it’s to grind it down.
They use persistently negative funding rates to wear down longs, and slow rises followed by sharp drops to wear down shorts. Neither side makes money; only the market makers steadily collect funding fees.
BTW is a classic example of this playbook. The project is about to distribute token rewards, and on top of that, funding rates have stayed deeply negative. Every second you stay long right now, you’re paying the shorts.
It’s not that the market makers can’t push the price to $10—it’s just not worth it. The short positions they’d liquidate on the way up wouldn’t cover their costs.
So they’ve chosen a different game: keep the price flat and just collect your funding fees.
You think you’re trading futures, but in reality, you’re working for the market makers.
Next time you see a coin with persistently rising negative funding rates, don’t rush to buy the dip. First, ask yourself:
Who’s collecting your overnight fees?
$BTW
The reason is simple: excessively high OI means the market makers need more capital to control the market, and the most efficient approach isn’t to pump the price—it’s to grind it down.
They use persistently negative funding rates to wear down longs, and slow rises followed by sharp drops to wear down shorts. Neither side makes money; only the market makers steadily collect funding fees.
BTW is a classic example of this playbook. The project is about to distribute token rewards, and on top of that, funding rates have stayed deeply negative. Every second you stay long right now, you’re paying the shorts.
It’s not that the market makers can’t push the price to $10—it’s just not worth it. The short positions they’d liquidate on the way up wouldn’t cover their costs.
So they’ve chosen a different game: keep the price flat and just collect your funding fees.
You think you’re trading futures, but in reality, you’re working for the market makers.
Next time you see a coin with persistently rising negative funding rates, don’t rush to buy the dip. First, ask yourself:
Who’s collecting your overnight fees?
$BTW