Binance's $1.5 Billion Liquidations and Negative Funding Rates Suggest Potential Market Low Point

Over the weekend, Bitcoin sharply fell to $112,000, prompting over $1.5 billion in liquidations on Binance, with negative funding rates indicating extreme bearish sentiment. This drop, driven by macroeconomic concerns and ETF outflows, triggered panic selling among retail traders, often seen as a precursor to recovery.

Despite the volatile market, options traders are predicting a comeback, targeting a Bitcoin value of $124,000 by end of August. Despite the market's instability, Bitcoin's overall long-term outlook remains positive due to factors such as institutional adoption, regulatory clarity, and stablecoin growth. The current market situation could be seen as a classic "buy-the-dip" opportunity if ETF inflows resume and funding rates stabilize.