Bitcoin Funding Rates Turn Negative on Binance Amid Market Tensions

Bitcoin Market Sentiment Shift

Political tensions between US President Donald Trump and Elon Musk led to a rapid change in the Bitcoin (BTC) market. The funding rate on Binance shifted from positive to negative, indicating increased market fear.

Funding rates dropped from +0.003 to -0.004.
BTC price decreased from mid-$100,000 range to $100,984.
Over two weeks, BTC declined by 4.1%.

Analyst Darkfost noted that previous instances of negative funding were followed by significant price increases. Historical examples include:

October 16, 2023: BTC rose from $28,000 to $73,000.
September 9, 2024: Price surged from $57,000 to $108,000.
May 2, 2025: Jumped from $97,000 to an ATH of $111,000.

Whales Accumulating BTC

Large investors are actively increasing their exposure to BTC, with new whales acquiring $63 billion worth of Bitcoin, indicating strong confidence in its future.

QCR Capital analysis suggests BTC could reach $130,000 by Q3 2025.
The realized cap held by long-term holders surpassed $20 billion.

However, some analysts caution that BTC may drop below $100,000 before resuming its upward trend. As of now, BTC is trading at $104,069, down 0.5% in the last 24 hours.