Bitcoin Price Drops Near $100,000 as Traders Shift to Bearish Sentiment

Bitcoin (BTC) experienced a significant decline, approaching the $100,000 mark with an intraday low of $100,984. This volatility is attributed to heightened market sentiment following a public exchange between US President Donald Trump and Tesla CEO Elon Musk. The global crypto market cap fell by 4%, decreasing from over $3.4 trillion to $3.33 trillion.

Key Metrics Indicate Bearish Sentiment

Binance net taker volume dropped from $20 million to -$135 million in under eight hours.
This shift represents the largest intraday net taker volume reversal on Binance this year.
Concentration of short positions increased alongside selling pressure.
BTC perpetual futures funding rates turned negative, dropping from +0.003 to below -0.004.
Short sellers paid a premium to maintain bearish positions, indicating rising fear in the market.

Historical Patterns Suggest Possible Recovery

Historically, deeply negative funding rates have preceded significant price recoveries for Bitcoin. Notable instances include:

October 2023: BTC rose from $28,000 to $73,000
September 2024: BTC increased from $57,000 to $108,000
May 2025: BTC moved from $97,000 to $111,000

Traders are monitoring for potential signs of a short squeeze that could lead to upward momentum.