Funding on the largest perpetual futures contracts has been persistently negative for more than a week, meaning short holders are paying longs to keep positions open.
Extended negative funding is uncommon outside stress episodes. It usually reflects either hedging by holders of spot inventory or a genuine crowd of directional shorts.
Onchain data reviewed by this newsroom points to both: exchange-held stablecoin balances have grown while spot balances at custodians have been stable, consistent with hedged rather than liquidated positions.
Options skew tells a milder story, with downside puts only modestly bid, which argues against a market bracing for a disorderly fall.
Traders are watching whether funding normalises without a price move. If it does not, the cost of carrying shorts will eventually force a decision.
