Bitcoin and the entire crypto market faced a sharp decline as fears of a U.S. trade war rattled investors. The price plummeted amid uncertainty, only to stage a swift recovery after reports emerged that President Trump is in negotiations with Mexico and Canada to lift the tariffs. This rapid turnaround has brought renewed optimism to the market, but volatility remains high.
Amid these turbulent price movements, key metrics from CryptoQuant reveal that the Bitcoin Funding Rate has turned negative for the seventh time in a year. Historically, each of the previous six instances of negative funding rates has signaled a strong bullish momentum for BTC. This metric, which reflects the cost of holding leveraged positions in perpetual futures contracts, suggests that traders have turned overly bearish—often a precursor to a sharp rebound.
Bitcoin’s ability to recover from the recent selloff highlights its resilience, but the…
