Cryptocurrency analyst Murphy (@Murphychen888) analyzed via X that "long position investors in the current cryptocurrency perpetual futures market are paying approximately $390,000 in funding fees per hour to short position investors, which could lead to increased downward pressure." He continued, "This figure significantly exceeds the recent 7-day average of $220,000, indicating a clear dominance of long positions in the market. Furthermore, since May 12, the 7-day average funding rate has shifted from negative to positive and this trend has continued to date, with the overheating trend intensifying recently. In a high funding fee environment, the cost of maintaining long positions increases, making it highly probable that some long investors will voluntarily liquidate due to cost pressure over time. If the price falls further and breaks key support levels, a cascade of forced liquidations could occur, further amplifying downward pressure. Given that spot demand and on-chain activity have significantly slowed down, futures trading is challenging, thus caution is advised for excessive leveraged trading."
