Bitcoin's perpetual funding rate recently dipped below zero for the first time in 2025, typically a signal of a local price bottom. The cryptocurrency has been consolidating between $90,000 and $100,000, with reactive sentiment shifts as it approaches these thresholds. Negative funding rates, such as the -0.001% recorded, indicate that short positions are paying long positions, suggesting potential price rebounds. This phenomenon has been observed in the past during key market events, including the Silicon Valley Bank collapse. While negative funding rates can signify local bottoms, they do not guarantee immediate price recoveries and may indicate ongoing bear market conditions. Market participants are advised to use such indicators in conjunction with other tools for a comprehensive market view. As Bitcoin continues its fluctuations, the implications of funding rates play a critical role in understanding market dynamics and trader sentiment.

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