They will say, “Killa won’t hold a $BTC long for 2 years.”
Hold my beer.
APR on Binance, Bybit & many other exchanges averages around 0.01% every 8H reset, which is 0.03% a day, 0.21% a week, and roughly 0.84% a month. That equates to around 10.08% funding per year, and that’s assuming funding stays at 0.03% every single day.
I remember last cycle, there were plenty of periods where funding was actually negative or sitting around 0.00%. So that metric could end up being significantly lower.
Theoretically speaking, on a 2X long position that I’ll be aiming to get a 100–120% increase on, I’m looking at a 200–240% return on my assets while paying a maximum of roughly 20% in funding over two years.
That’s a small price to pay for the potential return you’re getting.
So sure, you can think this position is irrational, and you can think the stop loss is retarded. But it’s simple mathematics. It’s the same way I positioned myself when BTC was at $123K with a 3X short position.
In the end, I was right then.