Bitcoin Funding Rate Turns Negative: Potential Short Squeeze Looms

A negative Bitcoin funding rate on Binance, signaling aggressive shorting, has raised concerns about a potential price squeeze in the near term. K33 Research’s analysts highlight a significant increase in open interest as traders actively engage in bearish bets. This shift has prompted speculation of a rapid price reversal and subsequent market volatility. While a negative funding rate is generally seen as a bearish indicator, historical data suggests that it often leads to positive market reactions over time. ]