"Bitcoin Funding Rate Records First Negative This Year... Possible Short-Term Bottom"

Son Min

Summary

It was reported that Bitcoin perpetual futures funding rate recorded its first negative this year.
A negative funding rate is generally a signal of a short-term bottom in prices.
It was added that there was a tendency for short investors to increase after a negative rate in past bull markets.

The funding rate for Bitcoin (BTC) perpetual futures has recorded its first negative this year. This has led to opinions that Bitcoin's price may have reached a bottom.

On the 9th (local time), CoinDesk reported, "For the first time this year, the funding rate for Bitcoin perpetual futures has turned negative," adding, "A negative funding rate generally signals a short-term bottom for Bitcoin prices." It continued, "The bottom in price appears when the futures funding rate becomes negative and short (sell) investors increase," noting, "Many short investors were liquidated during the early bull market in 2024 as well."

BTC