BTC Aggregate Funding Rates are Upside Down

Here's why high leveraged longs are ruining any chance at recovery.

Right now, shorts are getting paid to hold their positions open.

Yes, you heard me correctly!

It's basically overconfidence in longs, where retail traders are attempting to "buy the dip" using heavy leverage.

They aggressively open leveraged long positions to catch the bounce, which keeps the perpetual price higher than the spot price, resulting in a positive funding rate.

Also note - Institutional Spot Dumping Market makers and institutions often accumulate spot positions and sell them into the market. This drives the spot price down, while the bullish sentiment of retail traders artificially keeps the futures contract price higher.

Long story short, high leveraged longs are adding fuel to this fire. Until they stop throwing money at the market, it will continue to burn them. $BTC $FIDA $BSB