Bitcoin's perpetual contract funding rates have plunged to -6%, marking one of the lowest levels in three months, as reported by CoinGlass data. This drop follows Bitcoin's brief decline to $63,000 amid geopolitical tensions involving the U.S., Israel, and Iran. The negative funding rate suggests a strong bearish sentiment, with traders paying a premium to maintain short positions.
Despite the volatility, open interest in Bitcoin has risen from 668,000 BTC to 687,000 BTC, indicating increased market participation. Over the past 24 hours, more than $500 million in crypto positions were liquidated, with long liquidations surpassing $420 million. Bitcoin is currently striving to reclaim the $64,000 mark, and analysts predict a potential short squeeze could be on the horizon.
Bitcoin Funding Rate Plummets to -6%, Indicating Possible Short Squeeze
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