How bad are funding rates when holding a BTC short for months?
How bad are funding rates when holding a BTC short for months?
I’m considering opening a BTC short around 85k with a higher timeframe view (possibly holding for a few months if the thesis plays out).
What I’m still confused about is funding rates over long periods.
I know shorts can sometimes get paid during bullish conditions, but during bear markets/ranging periods funding can flip negative and shorts start paying. For people who have actually held BTC shorts for months:
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Did funding end up being a big deal overall?
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Did it noticeably eat into profits?
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Is using dated/quarterly futures a much better option for this type of trade?
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And for platforms like Hyperliquid/Binance perps, how bad can funding realistically get over 3–4 months?
Trying to understand the practical side before committing to a longer-term position.
Yes, in bear markets, dated tends to be better for shorting since the annualized premium is usually higher (can be -5% vs. -25% for perps).
Funding is not too bad on the short-side usually. Mostly it’s an issue for longs. Rarely do you see deeply negative funding rates for extended periods of time.