I think one reason for the bitcoin buying spree a few weeks back was the negative funding rate. Some traders took advantage of that to open buy positions and earn from the funding rate, which might be small percentage-wise, but for those with a lot of capital, it adds up when leveraged.
I get that high leverage isn’t ideal, but that’s not really what we’re discussing here. Plus, traders benefitted too since bitcoin's price has risen.
So, the funding rate’s been in the negatives for weeks, but I just checked the derivative market and saw it’s finally positive now.
Does this hint at a potential short sell phase? Can’t really speculate on whether it’ll dip back down to negative again though, that’s tough to predict.
It is time for those who will invest in Bitcoin at short-term rates to take profits, but those who will invest in Bitcoin at long-term rates will never have such negative thoughts. Because no matter how high the price of Bitcoin is, they will never plan to invest, but rather will be deprived of planning to invest. However, those who will invest in Bitcoin for the sake of money should wait until the price of Bitcoin is between 87k and 90k dollars.
It could be yes, and some whales like to long squeeze retail trader too. But Bitcoin funding rate has been negative or 0% for a couple weeks I usually trade altcoin and this funding rates made other crypto cant move freely. Tho maybe people are starting to chase the breakout. In May 2026, this shift is likely driven by the news of Kevin Warsh taking over the Fed and the progress of the CLARITY Act.
Bitcoin needs a little bit of a push and stay above 80K and welcome bullish again haha, we are in the Volatility Zone
The Fear & Greed Index is right in the middle, and funding rates are turning positive. If Bitcoin can somehow break above $85,000 and hold steady there, I think well see prices go even higher. Still, I recommend not forgetting that were in a bear market. Funding rates alone dont help us understand whats really going on because while were talking about cycles that span years, funding rates are typically set for transactions that can last just a few hours, days, or weeks.
Even if Bitcoin were to drop to $60,000 in three months, but theres a chance it could rise to $90,000 in a week, funding rates would likely remain positive.
The heat map of orders on exchanges shows that the total value of long positions opened near the $74,700 mark is $3.4 billion.
This figure will rise to $11 billion if bitcoin drops to $70,000 during the ninety-day liquidation period. Taken together, the positioning data indicates that traders are prioritizing deeper pools of liquidity rather than chasing higher prices above the $80,000 mark.
But then again, the market is too volatile right now. Much will depend on actions in the Middle East. And, of course, the traditional market itself is under serious inflationary pressure.