Bitcoin funding rate hits -6%, signaling potential short squeeze

According to Coindesk, CoinGlass data shows that Bitcoin perpetual contract funding rates have dropped to -6%, reaching one of the lowest levels in three months, indicating aggressive short positions emerged after Bitcoin briefly fell to $63,000 following strikes by the U.S. and Israel on Iran. Meanwhile, open interest measured in BTC increased from 668,000 BTC to 687,000 BTC, suggesting growing market participation despite price volatility. A negative funding rate typically reflects strong bearish sentiment, with traders willing to pay a premium to maintain short positions. Over the past 24 hours, more than $500 million in crypto positions were liquidated, with long liquidations exceeding $420 million. Bitcoin is currently attempting to reclaim the $64,000 level, and market analysts suggest a potential short squeeze may be imminent.