funding rates is rotating through basis compression
The healthier setup is alignment: funding rates improving while Asia session flows stays orderly.
If US session flows deteriorates while macro liquidity looks fine, the tape often turns defensive first.
Put beside current chatter on “Mercado Bitcoin says phased reopening to begin Monday, will cover losses,” the incentive problem looks clearer.
Risk is easiest to ignore precisely when it is most expensive.
For operators, process beats prediction when the tape is noisy.
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