Bitcoin sets up potential short squeeze as funding plunges to -6%

Bitcoin is attempting to recover the $64,000 level after dipping to $63,000 following geopolitical events involving U.S. and Israeli strikes on Iran. Concurrently, perpetual futures funding rates plummeted to -6%, the second lowest in three months, indicating aggressive short positioning where short traders are paying a premium to maintain bearish bets. This negative funding coincided with a rise in coin-margined open interest from 668,000 BTC to 687,000 BTC, suggesting growing bearish participation. Furthermore, over $500 million in crypto positions were liquidated in the last 24 hours, with over $420 million of that being long positions forced closed. Analysts caution that if traditional markets react negatively upon reopening, Bitcoin, trading as a risk asset, could face further downside toward or below $60,000.

(Source：CoinDesk)