Funding rates = the cost to long or short in perpetual futures.

🟢 When funding rates go UP(+ve):

  • Longs pay shorts.

  • Market is bullish, too many people betting price will rise.

  • Could signal overheating—pullback possible.


❓Why they rise:

  • Excessive long positions.

  • Positive sentiment or breaking news.

  • Price trades above spot value.


🔁 Watch funding for clues—don’t get caught on the wrong side!

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