The post Midnight: Perp traders are walking away – And NIGHT pays the price appeared on BitcoinEthereumNews.com.

Midnight [NIGHT] has slipped firmly into bearish territory as capital outflows have intensified over the past few weeks. Data shows the asset has dropped 41% over the past three weeks, with another 10% decline recorded in the last 24 hours. Selling pressure continues to mount for NIGHT, driven largely by perpetual market participants who have weighed heavily on price action. The dominance of these investors has amplified downside momentum, leaving the asset under sustained pressure. Pressure builds in the perpetual market The latest decline was further exaggerated by a sharp wave of capital outflows recorded in the past day. NIGHT has lost more than 10% of its circulating liquidity in the market, marking a significant drawdown. In numerical terms, capital fell by $5.4 million, pushing the total balance of perpetual contracts down to just $47.95 million. This steep gap suggests that traders are actively closing their positions, rather than new capital rotating into the market. Source: CoinGlass Capital has not only exited the market, but the remaining liquidity is now heavily tilted in favor of short positions. Data shows that sell-side contracts currently outnumber buy-side contracts, a trend reflected in the Open Interest-Weighted Funding Rate, which has turned negative. At press time, the Funding Rate was -0.0156%, a notably high negative reading that highlighted the depth of seller dominance. A sustained drawdown at these levels would increase the likelihood of NIGHT slipping further below its current price range. Who’s driving the sell-off? Binance and OKX traders appear to be major contributors to the ongoing decline, with market data pointing to strong sell-side activity from both exchanges. The Taker Buy/Sell Ratio, which tracks whether volume in the perpetual market favors longs or shorts, offers clearer insight. A reading above 0 signals buying pressure, while a reading below 0 indicates rising sell…

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Filed under: News - @ January 16, 2026 3:28 am