Insanely long, funding rates of 100%

in btc •  29 days ago 

I was watching the pump of btc as I am laying at the pool and got distracted from reading a book by the current price movements.

50594295-AD89-4A4D-B308-0EC8FFD9AEAF.jpeg

The funding rate on Deribit, was over 0.3%. That is what the longs pay the shorts every 8h.

As I am writing this it seems to be going down and as u can see is only 0.25% in the screenshot.

There are 3 8h timeslots in a day. This means an apr of 0.25 *3 * 356 = 267% APR.

this cannot work for long

When everyone is on one side of the market, it simply does not work. The easiest way to profit here is squeeze the market down and if this does not happen automatically this insane APR will do the work.

Be careful out there

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This pump came out of no where and fast which means one person or company just bought a shit load. Its not a true pump and I believe we will be returning to mid $7,000 It just makes no sense at all there is nothing to back it up at the moment.

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Definitely not the time to buy, wait for the correction and let the math and analysis do their thing :D

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@knircky, Good to see that you've deep dived into the chart and analysing everything and giving your perspective. And it's really important to be careful in this dynamic economy for sure.

Enjoy your time ahead and stay blessed.

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Insane graph ....

I wish my poker graph would start traveling upwards like that lol.