Bitcoin funding rates hit February lows, raising short squeeze odds

Bitcoin funding rate hits -0.011, shorts face squeeze risk

Bitcoin gained about 10% this week. Derivatives funding flipped deeply negative, raising squeeze risk for shorts according to NewsBTC and on-chain data.

Funding rates fell to about -0.011. This is the lowest since early February, when price approached $60k per CryptoQuant (Gaah).

Negative funding means shorts pay longs. It signals a short-heavy market. Historically, deeply negative prints acted as a contrarian signal, increasing odds of an upside move per NewsBTC.

“The market is very ‘easy’ and obvious to trade on the sell side,” Gaah wrote. The analyst adds that “caution is needed” when setting positions in the current demand area source.