NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: LINK Price Climbs Following Chainlink's Deal With US Commerce Department, Eyes $30
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: LINK Price Climbs Following Chainlink's Deal With US Commerce Department, Eyes $30

Bitcoin Futures Funding Rate is Going Negative Even as Price Skyrockets

Joseph Young
Joseph Young
1 year ago
2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The funding rate of the Bitcoin (BTC) futures market is turning negative as the price of BTC surges. The trend indicates that short contracts are getting squeezed as the dominant cryptocurrency rises.

The term short squeeze refers to a scenario where traders are increasingly betting against Bitcoin but BTC goes up. As BTC increases, short holders then adjust their positions, buying up their positions to avoid liquidation.

The market buying from short contract holders then turns into buyer demand, further pushing BTC up.

bitcoin price

The monthly price chart of Bitcoin. Source: BTCUSD on TradingView.com

Shorts are Continuously Getting Squeezed as Bitcoin Rises—Technically Bullish Trend

The most widely utilized metric to gauge whether short or long contract holders dominate the market is the funding rate.

Bitcoin futures exchanges use a system called “funding” to ensure there is balance in the market.

When the market becomes overwhelmed with buyers or long contract holders, then the funding rate turns positive. A positive funding rate requires buyers to compensate sellers by paying a portion of their positions as fees.

But, when the market is overrun by sellers or short-sellers, the funding rate turns negative. Then, short-sellers have to compensate buyers.

The reason behind Bitcoin’s continuous upsurge is that the number of short-sellers is rising. As such, buyers are compensated for placing long contracts on BTC. Since Bitcoin is going up, more short-sellers are closing their positions, spurring buyer demand in the market.

bitcoin

The price of Bitcoin with funding rates. Source: BTCUSDTPerp on TradingView.com

A pseudonymous trader known as “Byzantine General” emphasized that the current technical structure of Bitcoin is optimistic. Yet, the funding rates are negative, which typically signifies it has room for a broader rally. He wrote:

“Insane. Predicted funding is going negative. We almost have the highest monthly close ever and funding is going negative. This is history in the making.”

BTC is Sucking Up a Big Portion of Cryptocurrency Market Volume

Atop the negative funding rate and the ongoing short squeeze, there are several other factors that might further fuel the positive Bitcoin market sentiment.

Most notably, Bitcoin is the only major cryptocurrency that is rising rapidly, while the rest of the market stagnates.

The sole uptrend of Bitcoin shows three key trends. First, profits are still cycling in from altcoins to BTC. Second, the demand for BTC is so high that the appetite for higher-risk plays is declining. Third, it shows that buyer demand in the spot market is clearly overruning the selling pressure.

Throughout the past week, there have been signs that miners have been selling BTC. The miner net inventory of Bitcoin has noticeably dropped, which indicates miners were selling BTC to cover their expenses.

Shortly after that, the hashrate of the Bitcoin blockchain network declined, as some miners in China slowed down after the rainy season.

Despite the various factors that could have placed significant selling pressure, BTC has been pushing through key resistance levels.

Tweet123Share196ShareSend
Joseph Young
Joseph Young

Joseph Young

Joseph is a web developer and designer, writer and a passionate musician who loves to travel often. He's worked as a researcher for a number of venture capital firms and as a freelancer designer for resorts and corporations in Korea and the Philippines.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Ethereum Demand Stays Strong As Exchange Reserves Keep Falling – Details

Ethereum Demand Stays Strong As Exchange Reserves Keep Falling – Details

Ethereum (ETH) is currently trading above the $4,400 level, showing resilience despite recent selling pressure and market-wide volatility. However, price...

Sebastian Villafuerte 1 hour ago
Bitcoin

Is The Bitcoin Price Bottom In? Here’s What Social Sentiment Says

On-chain analytics platform Santiment has weighed in on whether the Bitcoin price has reached its bottom, following its drop to...

Scott Matherson 2 hours ago
WLFI token

WLFI выходит на Binance: что это значит для рынка

Сегодня на Binance появился новый токен – WLFI от проекта World Liberty Financial. Теперь его можно купить и продать в...

daria 2 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Chainlink: Πού κατευθύνεται η τιμή μετά την εντυπωσιακή άνοδο;

Ιωάννης Ριζόπουλος 10 minutes ago
stellar xlm xlmusd

XLM Battles $0.45 Resistance Again: Is This the Breakout That Finally Sparks a Run to $1?

James Halver 19 minutes ago
bingx

Το BingX δείχνει τον δρόμο στα κρυπτονομίσματα – Πως θα διεκδικήσετε έπαθλο $5.000

Ιωάννης Ριζόπουλος 34 minutes ago

Premium Sponsors

Press Releases

  • 残りわずか3日!仮想通貨プレセールで話題の新興ミームコインが資金調達300万ドル達成

    ...

    4 minutes ago
  • BAY Miner Launches Mobile App, Providing Compliant Mining...

    20 minutes ago
  • Grokが教える今買うべき仮想通貨おすすめ – AIツールでリターンを最大化する方法

    Grokが教える今買うべき仮想通貨おすすめ –...

    24 minutes ago
  • 新しい仮想通貨がプレセールで50万ドル突破、次世代ミームコインの注目株

    ...

    43 minutes ago
  • Unlock Daily Crypto Earnings on XRP, DOGE, ETH, and BTC...

    51 minutes ago

Newsletter

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.