BTC Funding rates on Binance have once again turned negative, even as Bitcoin remains above the $100 000 threshold.
This behavioral shift follows a sharp correction likely driven by highly publicized tensions between Donald Trump and Elon Musk.
At the time, funding rates were trending upward, approaching +0.003.
Yet, the sudden event triggered a sharp drop below -0.004, signaling a swift change in sentiment and heightened uncertainty.
This rapid reversal indicates genuine fear among market participants, many of whom seized the opportunity to trade the volatility.
As a result, we have seen a spike in short-term selling pressure.
However, if the price were to bounce back strongly, this could easily flip into buying pressure, as overleveraged short positions begin to get squeezed.
When analyzing the current market cycle, we find that such deeply negative funding rates have occurred on three key occasions, each of which preceded a significant upward move :
➡️ October 16 2023 : BTC jumped from $28 000 to $73 000
➡️ September 9 2024 : BTC jumped from $57 000 to $108 000
➡️ May 2 2025 : BTC climbed from $97 000 to $111 000
The only exception to this pattern was on March 2, when the market reacted negatively to the announcement of tariffs on Canada and Mexico.
Such extreme readings often mark moments of maximum pessimism, precisely the kind of sentiment that can precede a strong bullish reversal when the short term negativity is gone.
Written by Darkfost
