{"id":5117,"date":"2025-06-07T05:00:28","date_gmt":"2025-06-07T05:00:28","guid":{"rendered":"https:\/\/ad-doge.com\/blog\/bitcoin-sees-negative-funding-on-binance-a-classic-setup-for-a-short-squeeze\/"},"modified":"2025-06-07T05:00:28","modified_gmt":"2025-06-07T05:00:28","slug":"bitcoin-sees-negative-funding-on-binance-a-classic-setup-for-a-short-squeeze","status":"publish","type":"post","link":"https:\/\/ad-doge.com\/blog\/bitcoin-sees-negative-funding-on-binance-a-classic-setup-for-a-short-squeeze\/","title":{"rendered":"Bitcoin Sees Negative Funding On Binance \u2013 A Classic Setup For A Short Squeeze?"},"content":{"rendered":"

As political tensions between US President Donald Trump and Elon Musk escalated yesterday, the Bitcoin (BTC) market experienced a sharp shift in sentiment, with the funding rate on Binance flipping from positive to negative within hours.<\/p>\n

Bitcoin Funding Rates Turn Negative On Binance<\/h2>\n

According to a CryptoQuant Quicktake post by contributor Darkfost, BTC funding rates on Binance have once again turned negative, even as the top cryptocurrency continues to trade above the $100,000 mark at the time of writing.<\/p>\n

The analyst attributed the sudden reversal in funding – from +0.003 to -0.004 – to the public spat between Trump and Musk on social media. This rapid shift reflects growing fear among market participants amid heightened uncertainty.<\/p>\n

\"cq1\"<\/p>\n

Following the sentiment shift, BTC fell from the mid-$100,000 range to a low of $100,984, according to CoinGecko. Over the past two weeks, the asset has declined by 4.1%.<\/p>\n

That said, the current dip may offer a prime buying opportunity to investors. If Bitcoin rebounds strongly, it could result in a strong resurgence in buying pressure, leading to a short squeeze that may propel BTC\u2019s price further up.<\/p>\n

Darkfost highlighted that there have been three instances during the current market cycle when BTC witnessed such deep negative funding. Notably, each of these instances were followed by a strong upward move in the cryptocurrency.<\/p>\n

For example, on October 16, 2023, BTC dipped into negative funding territory before rallying from $28,000 to $73,000. A similar pattern played out on September 9, 2024, when the asset surged from $57,000 to $108,000.\u00a0<\/p>\n

The most recent case was on May 2, 2025, when BTC jumped from $97,000 to a new all-time high (ATH) of $111,000. If history repeats, then the market may see a new ATH for BTC in the coming weeks. Darkfost noted:<\/p>\n

\n

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.<\/p>\n<\/blockquote>\n

Large Investors Increase BTC Exposure<\/h2>\n

Meanwhile, Bitcoin whales – wallets holding large amounts of BTC – continue to accumulate at a rapid pace. Notably, new whales have acquired BTC worth $63 billion, reflecting strong confidence in the asset\u2019s near-term prospects.<\/p>\n

Supporting this bullish outlook, recent analysis by QCR Capital indicates that large investors expect BTC to surge to as high as $130,000 by the end of Q3 2025. Additionally, the realized cap held by long-term holders has surpassed $20 billion, reinforcing positive sentiment.<\/p>\n

That said, some analysts urge caution, expecting BTC to crash below $100,000 before resuming its bullish momentum. At press time, BTC trades at $104,069, down 0.5% in the past 24 hours.<\/p>\n

\"\"<\/p>\n","protected":false},"excerpt":{"rendered":"

As political tensions between US President Donald Trump and Elon Musk escalated yesterday, the Bitcoin (BTC) market experienced a sharp shift in sentiment, with the funding rate on Binance flipping from positive to negative within hours. Bitcoin Funding Rates Turn Negative On Binance According to a CryptoQuant Quicktake post by contributor Darkfost, BTC funding rates…<\/p>\n","protected":false},"author":1,"featured_media":5118,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[245],"tags":[21,22,2595,28,342,32,36,254,255,462,585,2065],"class_list":["post-5117","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-binance","tag-bitcoin","tag-bitcoin-funding-rates","tag-bitcoin-news","tag-bitcoin-whales","tag-btc","tag-btcusdt","tag-cryptocurrency","tag-digital-asset","tag-donald-trump","tag-elon-musk","tag-on-chain-analysis"],"_links":{"self":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/posts\/5117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/comments?post=5117"}],"version-history":[{"count":0,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/posts\/5117\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/media\/5118"}],"wp:attachment":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/media?parent=5117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/categories?post=5117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/tags?post=5117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}