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Bitcoin Sees 4th Dip in Funding Rates This Year — What Does This Mean For BTC?

Bitcoin’s recovery continues to show momentum, with the asset currently trading at $94,288 after gaining 1.6% over the past 24 hours. The price has now risen nearly 15% over the past two weeks, reversing a previous correction phase and pushing BTC closer to retesting the $100,000 price mark.

Amid the price performance, recent market analysis points to diverging signals between BTC’s funding rate behavior and growing confidence among US-based investors.

Bitcoin Funding Rates Drop Despite Rising Prices

According to Nino, an analyst from CryptoQuant,  the Bitcoin funding rate—typically used to gauge sentiment in the perpetual futures BTC market has again dipped into negative territory, even as whale accumulation continues on major exchanges like Binance and Coinbase.

Nino particularly identified a notable development in Bitcoin’s derivatives market. The 72-hour average of BTC funding rates, including moving average indicators (MA, EMA, WMA), has entered negative territory for the fourth time this year.

Bitcoin funding rates.

Funding rates refer to periodic payments made between long and short positions on perpetual futures contracts, with negative rates meaning short positions are paying long positions. This generally reflects that the market is either positioning defensively or becoming cautious at current price levels.

What makes this instance notable is that previous dips into negative funding rates occurred at lower price levels, whereas the current shift has taken place above $94,000.

Nino suggests this may point to potential market exhaustion or a phase of profit-taking, where short traders are more active despite upward price movement. If volatility increases and funding rates remain suppressed, a spike in liquidations could follow, especially if open interest in leveraged positions expands rapidly.

Coinbase Premium and Whale Behavior Reflect US Investor Activity

In a separate analysis, CryptoQuant analyst Crypto Dan noted a trend reversal beginning around April 21, accompanied by renewed buying from large holders, or “whales.” Notably, these purchases were first identified on Binance and were soon followed by similar activity on Coinbase.

According to Dan, this pattern may indicate rising confidence among US-based investors and growing participation from institutions or high-net-worth individuals.

Bitcoin Coinbase premium gap.

One supporting metric is the Coinbase premium, which tracks the price difference between BTC on Coinbase and other global exchanges. A positive premium typically reflects stronger demand from US investors.

As of now, this premium remains in positive territory, suggesting that US market participants are contributing to BTC’s recent momentum. Dan concludes that the current phase may signal more than a typical price rebound and could represent a broader shift in market structure, driven by renewed capital inflows and institutional positioning.

Bitcoin (BTC) price chart on TradingView

Featured image created with DALL-E, Chart from TradingView


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