Bitcoin Funding Rates Turn Negative – Is a Major Price Surge Ahead?

On June 6, 2025, Bitcoin (BTC) funding rates on Binance dipped into negative territory, signaling a potential shift in market sentiment. This sharp downturn, highlighted by CryptoQuant as one of the most extreme negative funding events in the current cycle, has historically preceded major bullish moves.

The decline comes amid heightened global uncertainty, with geopolitical headlines involving former U.S. President Donald Trump and Elon Musk stirring volatility across markets. Despite the turbulence, BTC continues to hold strong above the $100,000 mark.

Negative funding rates suggest that short positions are paying a premium, often setting the stage for a possible short squeeze — a rapid price spike triggered by short traders closing their positions.

With these signals aligning, traders are keeping a close eye on Bitcoin’s next move. Could another rally be on the horizon?

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