The post Bitcoin’s Funding Rate Turns Negative: Could This Signal a Potential Price Rebound? appeared on BitcoinEthereumNews.com.

Bitcoin faces significant fluctuations as the average Funding Rate dips into negative territory across major exchanges. This drop in Funding Rate may signal a bullish sentiment as historically such periods often precede price recoveries. “The market traditionally rebounds after similar instances,” states CryptoQuant analyst Axel Adler, lending weight to optimistic forecasts. Bitcoin’s Funding Rate dives negative while optimism grows among investors; historical patterns suggest potential price rebounds ahead. Bitcoin’s Funding Rate hits negative Recent analysis reveals that Bitcoin’s average Funding Rate on four major exchanges, including Binance, Bybit, OKX, and Deribit, has fallen into negative territory. This shift, noted by market experts, typically serves as a prelude to price recoveries. The historical data indicates that during the past cycles, the Funding Rate dropped to negative on four distinct occasions. Each time, Bitcoin’s price rebounded following the dip, illustrating a trend where negative Funding Rates correlate with subsequent rallies. Historically, negative Funding Rates have proven more conducive to price appreciation than depreciation, implying that the current scenario may bode well for investors. Source: CryptoQuant As Adler noted, corporate acquisitions of Bitcoin have surged amid minimal selling pressure in the spot market. This shift in behavior is further evidenced by the substantial drop in spot selling volume, plummeting from $6.2 billion on March 5 to just $2.4 billion by April 1. Such a reduction of $3.8 billion in less than a month suggests a significant shift in market dynamics. Source: Checkonchain Additionally, low activity among larger holders or “whales” is an encouraging sign. Whale-to-exchange flow has significantly declined, showing a drop from 1.76% to just 0.15%. This indicates that whales are engaging less in mass selling, further suggesting a shift in sentiment towards accumulation over liquidation. Source: IntoTheBlock Moreover, the market sees a resurgence in long-term holders, indicating renewed interest in accumulation.…

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Filed under: News - @ April 2, 2025 4:24 pm