BTC funding rates stay negative despite breaking $81K due to institutional hedging

K33 Research has analyzed that the funding rate in the derivatives market remains negative even as Bitcoin has rebounded past $81,000. According to Decrypt, the firm noted that the 30-day average funding rate for BTC perpetual futures contracts has now been negative for 66 consecutive days. While a negative funding rate is typically a strong buy signal indicating that bearish bets are dominant, K33 Research attributes the current phenomenon to structural hedging by institutional investors rather than market fear. The firm explained that short positions from traders employing delta-neutral strategies are maintaining the negative funding rates. Decrypt added that if BTC breaks through $82,000, a short squeeze could liquidate accumulated short positions and push the price as high as $100,000. However, it also noted the possibility of a correction down to $75,000 if spot demand slows.