The price of Bitcoin was somewhat slow in the last days of April before bursting to life again to begin the new month of May. The premier cryptocurrency has since made a return near $98,000, flirting with the highly coveted $100,000<\/a> level to kick off the weekend.<\/span><\/p>\n Since losing the $100,000 price mark in early February, BTC has struggled to put up any major positive run in the past three months. The latest on-chain data suggests that the dream of reclaiming a six-figure valuation might truly be on, with the Bitcoin price looking to resume its bull run.<\/span><\/p>\n In a recent Quicktake post on the CryptoQuant platform, on-chain analyst Amr Taha revealed<\/a> that the Bitcoin funding rates on Binance have witnessed a significant decline in the past few days. The \u201cfunding rate\u201d indicator is a metric that measures the periodic fee exchanged between traders in the derivatives (perpetual futures) market.<\/span><\/p>\n A high or positive funding rate signals that the long traders (investors with buy positions) are paying a fee to short traders (investors with sell positions). This direction of the periodic payment typically indicates a dominant bullish sentiment in that particular market.\u00a0<\/span><\/p>\n On the flip side, when the funding rate metric has a negative value, it implies that investors with short positions are paying traders with buy positions in the derivatives market. This funding rate trend signals that the market is being dominated by the bears.<\/span><\/p>\n According to data from CryptoQuant, the Bitcoin funding rate on Binance, the world\u2019s largest crypto exchange by trading volume, has fallen into a deeply negative territory around -0.0008%. This development reflects a significant shift in the current market sentiment and dynamics<\/a>.<\/span><\/p>\n In their Quicktake post, Taha attributed the recent decline in the funding rate to the aggressive selling by the Bitcoin retail traders. The on-chain analyst then correlated the selling pressure to fear amongst market participants rather than \u201cfundamental weakness.\u201d\u00a0<\/span><\/p>\n Taha noted that when the funding rates become too negative, the Bitcoin market often becomes susceptible to a short squeeze, where short traders are forced to cover their positions due to rising prices \u2014 fueling a further upside move. Moreover, extremely low funding rates have been historically correlated with local price bottoms, preceding bullish trend reversals.<\/span><\/p>\nWhat Negative Funding Rates Mean For BTC Price?<\/b><\/h2>\n
![\"Bitcoin\"](\"https:\/\/i0.wp.com\/img.cryptoquant.com\/4545\/quicktake\/mhk9JRu_e2a81f3c99c47ffd4406b2c2e9ab3753b9fae3efc63b607a3406a0848a159be4.png?resize=1280%2C720&ssl=1\")
<\/p>\nSource: CryptoQuant<\/pre>\n
Bitcoin Price At A Glance<\/b><\/h2>\n
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