Crypto Funding Rates Don Hit 3-Year Low After $1T Liquidation
Crypto funding rates sharply drop enter the lowest level since 2022 bear market come after the historic “crypto Black Friday” liquidation wey wipe out $1 trillion market cap and 1.6 million leveraged long positions. Glassnode data show say funding rates for Bitcoin and Ethereum perpetual futures dey sharply negative as short positions overtake long ones, showing say speculation wey too much don reset bad. Even though the signal be bearish, open interest show say long to short ratio be 60:40, and trader sentiment don turn bullish, as spot markets dey do V-shaped rebound—Bitcoin don go up over 5% and Ethereum don climb 12% from the recent lows. This kind serious negative funding rates fit trigger big short squeeze wey fit push prices go higher as market dey stabilize.
Bullish
Di drop for crypto funding rates reach three-year low dey show say di bearish pressure wey dey come from short positions don peak. For history, such serious negative funding rates dey usually happen before short squeezes, wey fit make price quick rebound, like di recent V-shaped recoveries wey happen for Bitcoin and Ethereum. For short time, di plenty short contracts fit force dem to close position, wey go make price go up. For long term, di big deleveraging and reset of too much leverage fit make market stable, start better bullish trend as speculative imbalance dem correct.