Bitcoin and the entire crypto market faced a sharp decline as fears of a U.S. trade war rattled investors. The price plummeted amid uncertainty, only to stage a swift recovery after reports emerged that President Trump is in negotiations with Mexico and Canada to lift the tariffs. This rapid turnaround has brought renewed optimism to the market, but volatility remains high.

Amid these turbulent price movements, key metrics from CryptoQuant reveal that the Bitcoin Funding Rate has turned negative for the seventh time in a year. Historically, each of the previous six instances of negative funding rates has signaled a strong bullish momentum for BTC. This metric, which reflects the cost of holding leveraged positions in perpetual futures contracts, suggests that traders have turned overly bearish—often a precursor to a sharp rebound.

Bitcoin’s ability to recover from the recent selloff highlights its resilience, but the coming days will be critical in determining whether the market continues its upward trajectory. If historical patterns hold, this latest negative Funding Rate could set the stage for another significant rally, reinforcing Bitcoin’s long-term bullish outlook despite short-term uncertainty.

Bitcoin Fundamentals Point To A Rally 

Bitcoin has experienced massive volatility in recent weeks, and despite strong price action, the direction remains uncertain. The macro environment is fundamentally bullish, with key developments in the U.S. opening doors for crypto adoption, a pro-crypto president in office, and the final year of the halving cycle unfolding. Historically, these conditions have set the stage for explosive growth. However, sentiment remains mixed as altcoins underperform compared to past cycles, leading many investors to question whether Bitcoin can sustain its momentum.

Amid this uncertainty, key metrics shared by analyst Axel Adler on X reveal a significant development: for the seventh time in a year, the Bitcoin Funding Rate has turned negative. Historically, this metric indicates that traders in perpetual futures contracts are paying a premium to hold short posi

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Author: Sebastian Villafuerte