Mechanism Capital Lianchuang: The entry of new funds in the bull market will not consider price or funding rate

On March 7th, Andrew Kang, co-founder of Mechanism Capital, wrote on social media that some trading methods are suitable for PvP market conditions but not for PvE market conditions.

Firstly, in a bull market, it is not advisable to focus too much on high funding rates or prices that only rise and do not fall, as funding rates may continue to rise while bears may not be sustainable.

Secondly, pay attention to the rotation of funds, which is different from before. New entrants to the market will not invest in a diversified way like old cryptocurrency traders. They will choose their favorite meme coins and continue to buy them every day/week with their salaries. Traders who short meme coins due to the rotation of meme coins will eventually be eliminated by the market.