Novices may not be clear about the impact of the funding rate on the price of #BTC . Let me explain it from the following two perspectives:

Funding rates represent market sentiment. When the funding rate is relatively high, it means that the market is crazy, and the market is about to turn from rising to falling. When the funding rate is relatively low, it means that the market is panicked, and the market is about to turn from falling to rising.

When the funding rate is a relatively high positive number, it will have two major impacts on transactions: First, the number of people willing to buy perpetual contracts is declining, because holding perpetual contracts requires high funding fees; second, people are willing to short The number of people holding perpetual contracts is on the rise, because holding perpetual contracts can reap high capital fees every day. Even if the entire market continues to rise, the high interest can make up for part of the losses. For miners, short selling in the market when the funding rate is relatively high can not only be a hedge, but also earn funding fees!