These days, I've seen the funding rates tilt overwhelmingly in one direction, to the point of exaggeration, and the group sentiment is very unified: either "short" or "mock." Frankly, during times like this, I tend to hesitate more — it sounds great to take the opposing side, but you have to withstand the period when "it can get even more extreme," and losing money while holding on is the hardest part.

My usual approach is to ask myself first: am I profiting from volatility mean reversion, or am I betting on the direction? If the funding rate is just ridiculously high, I’d rather take a small position to ride the opposing side, with a tight stop-loss; if macro factors are also tightening (recently, US bond yields and on-chain yield products are often compared), I prefer to avoid volatility and not expose myself to the big market just for that small fee.

Anyway, I don’t try to predict; I record this: extreme funding rates are more like a thermometer of sentiment, not a "must-reverse" button. Today, I’ll stay conservative and trade less.