Bitcoin Funding Rates Turn Bearish Amid Nasdaq Index Decline
The funding rates for Bitcoin have shifted to a negative stance as the Nasdaq sees a substantial drop, raising concerns over market sentiment.
Market Overview:
- Bitcoin (BTC) market sentiment has turned bearish, with Wall Street’s tech-heavy Nasdaq futures trading 700 points lower.
- This risk aversion stems from fears that the Chinese AI startup DeepSeek could challenge U.S. technological superiority.
- Bitcoin’s perpetual futures funding rates have flipped negative, indicating a shift towards short positions among traders.
Key Developments:
- The leading cryptocurrency has seen a decline of over 3%, hitting lows below $98,000 shortly after the opening in Asia.
- Nasdaq futures have dropped by over 3.5%, with significant impacts on tech stocks, particularly NVIDIA, which has fallen by 10%.
Petr Kozyakov, co-founder and CEO of Mercuryo, mentioned:
“Today’s sell-off comes after President Donald Trump last week initiated a working group on crypto policy that did not confirm the setup of a bitcoin reserve by the U.S. Meanwhile, Chinese AI startup DeepSeek seems to have stirred up fear in tech stocks due to its cost-effective solutions.”
Historically, negative flips in funding rates have often indicated local price bottoms, but caution remains as a potential short squeeze could lead to upward price pressure.
