Analyst: Negative BTC funding rate signals potential rebound

Crypto analyst Ali Martinez has pointed out that the funding rate for Bitcoin perpetual futures on major exchanges has turned negative, a signal he says has preceded major market rebounds over the past three years. On X, Martinez explained that overall market sentiment has reached a stage of "peak fear." He noted that historically, periods when long traders must pay short positions—indicated by a negative funding rate—have often marked short-term bottoms. Martinez added that this pattern has been observed repeating six times between 2022 and 2025. He concluded that while retail investors are preparing for further declines, professional traders are watching for a potential short squeeze.