In the past, whenever I saw extreme funding rates, I would get itchy and feel like "the counterparty opportunity is here," now I instead put my coffee aside and ask myself: am I trying to profit from the trend this time, or am I trying to wrestle with the market sentiment? To put it simply, extreme funding rates don't necessarily mean an immediate reversal; more often, they amplify volatility to the maximum, easy to enter, but exiting depends on luck.

My current approach is a bit more cautious: either wait for a pullback that gives me a justifiable entry point and then slowly grind along with the main trend; or simply reduce my position size/not trade to avoid that "tug-of-war" phase. If I really want to take the other side, I only take small speculative positions I can afford to lose, set proper stop-losses, and don’t try to argue with it.

Recently, the NFT royalty disputes seem quite similar: creators want income, secondary markets want liquidity, everyone thinks they are on the "reasonable" side. The market is the same—high fees just push people to one side, no one believes they will be the last... Anyway, I’d rather earn less than get liquidated and taught a lesson. That’s all for now.