Bitcoin Funding Rates Turn Negative as Price Declines

In Brief:

BTC perpetual contract funding rates have turned negative across major exchanges.

Binance’s BTC funding rate dropped to -0.0006%, signaling a potential local bottom.

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According to Coinglass data, Bitcoin's perpetual contract funding rates on major trading platforms have turned negative amid the ongoing price drop. Binance’s BTC funding rate fell to -0.0006%, indicating increased short positioning.

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‍CoinDesk analyst James Van Straten noted that negative funding rates are often a signal of a local bottom, suggesting that traders are overly bearish, which could lead to a potential price rebound if sentiment shifts.