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How Does an Altcoin’s Perpetual Futures Funding Rate React to Extreme Selling Pressure?

Extreme selling pressure causes the funding rate to become sharply negative. Short position holders are aggressively entering the market, driving the rate down.

This negative rate means short traders pay long traders to keep the contract price anchored to the spot price, reflecting the strong bearish bias.

What Does a Strongly Negative Funding Rate Imply for a Futures Trader?
How Does the Basis between Perpetual Futures and Spot Price Relate to the Funding Rate?
Does a Negative Funding Rate Always Precede a Price Bottom?
Define the “Funding Rate” Mechanism in Perpetual Futures Contracts