{"id":275701,"date":"2022-11-17T12:00:29","date_gmt":"2022-11-17T12:00:29","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=275701"},"modified":"2022-11-17T10:49:16","modified_gmt":"2022-11-17T10:49:16","slug":"ftx-collapse-sees-bitcoin-ethereum-to-be-shorted-the-second-and-third-most-amount","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/ftx-collapse-sees-bitcoin-ethereum-to-be-shorted-the-second-and-third-most-amount\/","title":{"rendered":"FTX collapse sees Bitcoin, Ethereum to be shorted the second and third-most amount"},"content":{"rendered":"<p>On-chain data shows that [cs_coin]BTC[\/cs_coin](BTC) is currently the third-most shorted cryptocurrency ever, while [cs_coin]ETH[\/cs_coin](ETH) stands as the second-most shorted.<\/p>\n<figure id=\"attachment_275703\" aria-describedby=\"caption-attachment-275703\" style=\"width: 1800px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-275703 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/11\/glassnode-studio_bitcoin-futures-perpetual-funding-rate-all-exchanges-26.png\" alt=\"BTC funding rates\" width=\"1800\" height=\"1013\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/11\/glassnode-studio_bitcoin-futures-perpetual-funding-rate-all-exchanges-26.png 1800w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/11\/glassnode-studio_bitcoin-futures-perpetual-funding-rate-all-exchanges-26-300x169.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/11\/glassnode-studio_bitcoin-futures-perpetual-funding-rate-all-exchanges-26-1024x576.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/11\/glassnode-studio_bitcoin-futures-perpetual-funding-rate-all-exchanges-26-768x432.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/11\/glassnode-studio_bitcoin-futures-perpetual-funding-rate-all-exchanges-26-1536x864.png 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><figcaption id=\"caption-attachment-275703\" class=\"wp-caption-text\">Source: Glassnode<\/figcaption><\/figure>\n<p>Analyzing the average funding rate (in %) set by exchanges for perpetual futures contracts, it can be observed above that long positions periodically pay short positions whenever the rate percentage becomes positive. On the other hand, when the rate dips towards the negative end of the chart, short positions can be seen to pay long positions periodically.<\/p>\n<p>Events marked a low in the BTC cycle can be observed above in March 2020, Summer 2021, June 2022, and November 2022.<\/p>\n<figure id=\"attachment_275702\" aria-describedby=\"caption-attachment-275702\" style=\"width: 1800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-275702 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/11\/glassnode-studio_ethereum-futures-perpetual-funding-rate-all-exchanges-8.png\" alt=\"ETH funding rates\" width=\"1800\" height=\"1013\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/11\/glassnode-studio_ethereum-futures-perpetual-funding-rate-all-exchanges-8.png 1800w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/11\/glassnode-studio_ethereum-futures-perpetual-funding-rate-all-exchanges-8-300x169.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/11\/glassnode-studio_ethereum-futures-perpetual-funding-rate-all-exchanges-8-1024x576.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/11\/glassnode-studio_ethereum-futures-perpetual-funding-rate-all-exchanges-8-768x432.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/11\/glassnode-studio_ethereum-futures-perpetual-funding-rate-all-exchanges-8-1536x864.png 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><figcaption id=\"caption-attachment-275702\" class=\"wp-caption-text\">Source: Glassnode<\/figcaption><\/figure>\n<p>In second place regarding shorting, ETH was likely only shorted more during the Merge event due to the &#8216;buy the rumor, sell the news' contagious mentality at the time.<\/p>\n<p>We have seen the steepest dip toward negative funding rates in recent history through September. Despite the decline, the belief that shorting will drag a price to zero often snaps back &#8211; forcing buyers to add fuel to the rally.<\/p>\n<p>To confirm this reversal for the times ahead, it is expected that further weeks of deep negative funding will be required before a snap-back event occurs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On-chain data shows that [cs_coin]BTC[\/cs_coin](BTC) is currently the third-most shorted cryptocurrency ever, while [cs_coin]ETH[\/cs_coin](ETH) stands as the second-most shorted. Analyzing the average funding rate (in %) set by exchanges for perpetual futures contracts, it can be observed above that long positions periodically pay short positions whenever the rate percentage becomes positive. On the other hand, [&hellip;]<\/p>\n","protected":false},"author":1398,"featured_media":275773,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[77873,77911,77921,76736,6849],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>FTX collapse sees Bitcoin, Ethereum to be shorted the second and third-most amount<\/title>\n<meta name=\"description\" content=\"The deep negative fund rates seen in recent history suggest further market depression before optimism can be established for a reversal.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/ftx-collapse-sees-bitcoin-ethereum-to-be-shorted-the-second-and-third-most-amount\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FTX collapse sees Bitcoin, Ethereum to be shorted the second and third-most amount\" \/>\n<meta property=\"og:description\" content=\"The deep negative fund rates seen in recent history suggest further market depression before optimism can be established for a reversal.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/ftx-collapse-sees-bitcoin-ethereum-to-be-shorted-the-second-and-third-most-amount\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2022-11-17T12:00:29+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-11-17T10:49:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/11\/bitcoin-ethereum-short.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Josh O&#039;Sullivan\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Josh O'Sullivan\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/ftx-collapse-sees-bitcoin-ethereum-to-be-shorted-the-second-and-third-most-amount\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/ftx-collapse-sees-bitcoin-ethereum-to-be-shorted-the-second-and-third-most-amount\/\"},\"author\":[{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/josh-osullivan\/#person\",\"name\":\"Josh O'Sullivan\",\"url\":\"https:\/\/cryptoslate.com\/author\/josh-osullivan\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/josh-osullivan\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/josh-osullivan\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/11\/josh-osullivan-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/11\/josh-osullivan-300x300.jpg\",\"caption\":\"Josh O'Sullivan\"},\"jobTitle\":\"Editor\/Reporter\",\"description\":\"Josh has been writing for a decade and is passionate about mainstream crypto adoption, bringing positive financial change to the masses through crypto and de...\",\"worksFor\":{\"@id\":\"https:\/\/cryptoslate.com\/#organization\"},\"sameAs\":[\"https:\/\/x.com\/joshosullivan01\",\"https:\/\/www.linkedin.com\/in\/josh-o-sullivan-a268b7248\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/james-van-straten\/#person\",\"name\":\"James Van Straten\",\"url\":\"https:\/\/cryptoslate.com\/author\/james-van-straten\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/james-van-straten\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/james-van-straten\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/07\/cryptoslate-james-van-straten-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/07\/cryptoslate-james-van-straten-300x300.jpg\",\"caption\":\"James Van Straten\"},\"jobTitle\":\"Former Lead Analyst\",\"description\":\"James fervently appreciates data, technology, and trend-spotting. 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