Today I saw the funding rate spike again to a somewhat outrageous level, with a bunch of people in the group excitedly celebrating. Basically, they just want to take the other side of the trade to pick up cheap positions. But I’m getting more and more cautious now... Extreme rates are often not a “freebie,” but more like sudden turbulence in the market, and holding on blindly might mean getting left behind before the market reverts.

I usually wait for a confirmation candle first, and only consider taking the opposite position once I see stability; otherwise, I just avoid the volatility altogether, even if it means earning less. Recently, there’s been a lot of talk about social mining and fan tokens—can attention really be mined? I feel that the more heated the discussion gets, the more the market sentiment is amplified by the rate mirror. When more people are watching, it’s easier for the market to go off course.

Next time I encounter such extreme rates, I might reduce my position and wait for a pullback signal. Would you choose to go against the trend and fight the market, or just watch from the sidelines?