Leverage Funds Life and Death Game: AIOT Negative Rate Longs Pay Sky-High Interest Daily
The AIOT market is currently experiencing severe volatility, with the funding rate dropping to -0.845%. Bearish sentiment continues to spread, which may trigger a chain reaction of liquidation.
The exchange's recharge volume has increased by 300% week-on-week, indicating that some funds are attempting to bottom out or increase short positions, but the behavior of large whales transferring out 8.5 million tokens in 24 hours suggests that institutions or large holders are withdrawing.
The current market presents three major contradictions:
1. Under negative rates, longs are forced to pay high interest, which may accelerate leveraged liquidation.
2. The surge in recharge and the exit of whales coexist, leading to a divergence in fund flow.
3. A bearish technical outlook is hedged by some bottom-fishing funds. If the price breaks below key support levels, it may trigger a "flooding effect," where domino-style liquidations cause a short-term price collapse.
Leverage risk, avoid going against the trend. Closely monitor the fund flow of exchanges, unusual movements of whale addresses, and rate changes. If all three resonate downward, decisive reduction of positions is necessary. Market bottoms are usually accompanied by the release of panic sentiment, but currently, there are no clear signals indicating a stop in the decline.
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