Recently, many brothers have been asking: why is everyone opening short positions on contracts while prices keep rising?

I can't help but laugh. Short positions in contracts and selling spot are not the same thing. A short position must have a corresponding long position to execute; when you open a short, there are already long positions waiting to take over. Spot prices are backed by real money, while contracts are merely derivatives, which at most have a small impact on the spot price; the main focus is still on spot trading.

Just like how the funding fee for #MYX has dropped to -2 but prices are still rising, it's because the market makers are frantically buying spot. When the spot price stabilizes, the contracts can't go too far off track even if they go crazy; the significance of the funding fee is to prevent the contract price from deviating too much.

Market makers dare to mess around because they hold most of the spot. For instance, if they have 990 coins in hand, they can manipulate prices just by shifting them around, making prices rise, while the selling pressure from retail investors is negligible.

This is also why some coins are only available on contracts and not on spot. Remember, never touch coins controlled by market makers. If you can't distinguish between valuable coins and those that are manipulated knock-offs, and if you feel you need more guidance to avoid getting trapped, feel free to reach out to me. I will provide you with a detailed analysis!

#BNB创新高 #Strategy增持比特币 #加密市场回调 $BTC

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