BTC Negative Funding Short Squeeze

"Crypto derivatives markets had been building toward this moment for six weeks. Open interest in Bitcoin perpetual futures climbed steadily through July, with funding rates drifting negative as traders added to short positions. Bearish bets outnumbered bullish ones on every major exchange."

"Bitcoin futures open interest has dropped 19.5% from its June peak, funding rates have cooled to about 0.02% (from roughly 0.1%), and spot Bitcoin ETF outflows have slowed dramatically. When price and open interest both decline, it often suggests that traders are closing positions or being forced out via liquidations—rather than new leveraged positions building up at current levels."

"The RSI sits in neutral territory, and the funding rate turned negative for the first time in four months, a setup that usually appears right before a relief bounce."

"Cryptoinsightuk highlighted that despite Bitcoin's stronger price action earlier this week, funding rates still closed negative, showing derivatives traders remain heavily positioned to the short side."

"Cryptoinsightuk highlighted that despite Bitcoin's stronger price action earlier this week, funding rates still closed negative, showing derivatives traders remain heavily positioned to the short side."

"Cryptoinsightuk highlighted that despite Bitcoin's stronger price action earlier this week, funding rates still closed negative, showing derivatives traders remain heavily positioned to the short side."

"Funding rates on perpetual futures across major exchanges remain negative on a 7-day basis at -0.13% per Coinglass, meaning shorts are still paying longs to hold positions, which is the structural setup that produces a squeeze if spot can hold above the recent breakeven cluster."