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Bitcoin Funding Rate Drops 85% As Speculative Appetite Weakens – Details

Press Releases Crypto News Bitcoinist Bitcoin Funding Rate Drops 85% As Speculative Appetite Weakens – Details

Bitcoin has faced volatility and selling pressure since the start of February, dragging down altcoins and meme coins as bearish price action takes over the market. Bulls are showing signs of exhaustion, and analysts are calling for a broader correction, suggesting that BTC could see further declines before finding solid support.

With price action struggling to reclaim key levels, market sentiment remains uncertain. Key data from Glassnode reveals that the 7-day average funding rate has been in a steady decline since late January, now sitting at 0.004%—a staggering 85% drop from the December peak of 0.026%. This sharp decrease indicates that demand for leveraged long positions is fading, a sign that speculative appetite in the market is weakening.

Without renewed leverage and buying pressure, Bitcoin’s price action may remain choppy or corrective in the near term. While long-term fundamentals remain bullish, the short-term outlook suggests that BTC could see additional downside before a meaningful recovery takes place.

Investors are now watching for key support levels that could stabilize the market and provide an opportunity for the next leg higher. Until then, uncertainty and caution dominate the crypto landscape as Bitcoin navigates this consolidation phase.

Bitcoin Demand For Leveraged Longs Fading

Bitcoin’s price is currently hovering around the $96K mark, with bulls struggling to reclaim the $100K level and establish it as solid support. The market remains under pressure, with bears keeping BTC below critical supply zones, leaving analysts concerned about further declines in the short term.

Key metrics from Glassnode shared on X provide insights into this bearish sentiment. The 7-day average funding rate has steadily declined since late January, now sitting at 0.004%—a significant 85% drop from its December peak of 0.026%.

Bitcoin futures perpetual funding rate

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Author: Sebastian Villafuerte

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