Data, Analyst: The cost of short funding for BTC is high, and open interest has returned to a high point; currently, it is not an ideal time to open a short position

According to on-chain analyst Murphy (@Murphychen888), the BTC price has risen to around $79,000, and the current open interest (OI) in the futures market has returned to a recent high of 472,000 BTC, with market leverage continuing to accumulate.

During yesterday's peak, short sellers paid an average funding fee of up to $604,000 per hour to long positions, which, although lower than the peak, still far exceeds the 7-day average ($197,000). Murphy pointed out that the high OI combined with negative premiums intensifies the situation; once the price rebounds, short sellers forced to close their positions or facing liquidation will create buying pressure, triggering a short squeeze. Historically, rebounds have occurred under similar conditions on March 9 and April 13, and the current short ratio is not ideal.