$POWER traders need to understand the funding mechanics before loading heavy shorts. The current rate sits around -1.4% per hour.
That means if price moves sideways for 24 hours, short positions could bleed roughly 33% purely from funding costs. Holding a position without momentum in your favor becomes extremely expensive.
Clinging to aggressive shorts under these conditions is financially draining. Instead of hoping for a collapse, it may be wiser to reassess risk, reduce exposure, and protect capital.
Funding pressure alone can wipe out overleveraged bears long before price makes any dramatic move.
Disclaimer: Includes third-party opinions. No advice. Binance AI may be used without guarantee.See T&Cs.
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