Traders betting on SKR to fall are paying unusually steep fees directly to buyers, with rates dipping past -0.13% across a ten-minute window.
Imagine SKR is trading around $0.022. A massive wave of traders rushes in to bet that the price is going to crash, drastically outnumbering the traders betting on a rise.
Across ten continuous minutes, the cost for downward bettors to keep their positions open became increasingly extreme, dropping from -0.1168% to -0.1309%.
Imagine SKR is trading around $0.022. A large majority of traders are aggressively betting that the price will crash, outnumbering traders betting on a rise.
Over ten consecutive minutes, the cost for pessimistic traders to hold their positions kept worsening, with fees dropping from negative 0.1168% to negative 0.1309%.
In perpetual contracts, when too many traders bet in one direction, the exchange charges them a recurring fee. This funding rate is paid directly to the opposite side.
Picture a boat where nearly everyone leans to the port side to tip it over. To prevent capsizing, those leaning must pay the few sitting on starboard just to stay aboard.
A single negative reading is noise, but ten consecutive negative alerts signal intense conviction. Sellers are willing to pay massive penalties just to stay short.