I just checked the funding rate again, and it's back to that extreme situation where "everyone is pushing the elevator on the same side."

In the past, I couldn't help but take the opposite side, thinking about catching a counter-move, but more often than not, I got slapped in the face by the volatility first...
Now I instead ask myself: Am I trading based on signals, or am I trading based on emotions?
To put it simply, extreme funding rates don't necessarily mean an immediate reversal; they only indicate crowding and that some people are willing to pay for the direction.

These days, the group is again discussing stablecoin regulation, reserve audits, and various "de-pegging" screenshots.
When the atmosphere gets tense, funding rates tend to be pushed to exaggeration more easily.
My approach is quite cautious: if I don't see clear signs of retreat (like positions starting to loosen or large on-chain transactions flowing back to exchanges), I prefer to avoid volatility, open fewer positions, or try small positions to test the waters.
I'm no longer chasing explanations; if it happens randomly, so be it—staying alive is more important.