Two interpretations with different implications:
a) you're paid to go long so lots of people will buy
b) the equilibrium is implying people _need_ to get paid to go long, so they must think things are going down
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Would analyzing funding rate in conjunction with the contract's premium over or under the spot price/index potentially yield a concrete indicator? (And yes, I know for perps there's not necessarily supposed to be one).
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Theoretically funding rate = premium, but yeah really you should be combining them if you want to adjust for the BitMEX delay in funding
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I don’t think that’s right. “I need to get paid to go long” feels like a weird thought given the Oracle will be higher than spot.
Also if you’re on the fence and there’s a pay increase on a long position, how is that not bullish?
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Negative funding --> shorts paying to longs --> futures are trading _below_ spot, not above it
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