This funding rate data gives me chills 😅
$DRIFT -0.88%, $HIGH -0.66%, $PRL -0.52%... all TM are negative! What does this mean? Shorts are paying longs daily, and the market sentiment is bearish to the point of grandma’s house.
Extreme negative funding rate indicates:
1. A ton of players are going crazy short
2. Longs are few but as steady as a rock
3. Shorts are "paying to maintain" their positions
**My take**: Chasing shorts at this level is actually risky! With the funding rate negative like this, it often means shorts are stacked up. Once there’s a rebound, the short squeeze can hit hard.
**About funding rate arbitrage**: Theoretically, going long on spot + shorting contracts can net you the funding yield, but don’t forget—if the coin price continues to plummet, the margin on the contract side can get wiped out, and you won’t even have a chance to cry 🙃
So here’s the question: **Do you think these negative funding rate coins are the last dip before a rebound, or is the short feast still on?** Let me know in the comments!
#Write2Earn #Crypto #FundingRate
$DRIFT -0.88%, $HIGH -0.66%, $PRL -0.52%... all TM are negative! What does this mean? Shorts are paying longs daily, and the market sentiment is bearish to the point of grandma’s house.
Extreme negative funding rate indicates:
1. A ton of players are going crazy short
2. Longs are few but as steady as a rock
3. Shorts are "paying to maintain" their positions
**My take**: Chasing shorts at this level is actually risky! With the funding rate negative like this, it often means shorts are stacked up. Once there’s a rebound, the short squeeze can hit hard.
**About funding rate arbitrage**: Theoretically, going long on spot + shorting contracts can net you the funding yield, but don’t forget—if the coin price continues to plummet, the margin on the contract side can get wiped out, and you won’t even have a chance to cry 🙃
So here’s the question: **Do you think these negative funding rate coins are the last dip before a rebound, or is the short feast still on?** Let me know in the comments!
#Write2Earn #Crypto #FundingRate