BTC rises despite negative funding rates, a pattern seen at past market bottoms

Bitcoin's price is rising even as its funding rate has dropped to -0.005%, the lowest level since 2023, CoinDesk reported. The funding rate is a fee exchanged between long and short traders in perpetual futures to keep the contract price in line with the spot price. A negative rate indicates that short positions are paying long positions, signaling a prevalence of bearish bets. The media outlet noted that similar patterns occurred before the market bottomed out during the COVID-19 crash in March 2020, China's crypto mining ban in mid-2021, and the FTX collapse in 2022. The trend was also observed during the Silicon Valley Bank crisis and a tariff-related issue in 2023. The persistence of negative funding rates while the price climbs suggests the market is rallying against bearish sentiment, indicating that the liquidation of short positions could fuel further upward momentum.