BTC Funding Rates Turn Negative as Shorts Regain Dominance in Derivatives Market

Odaily reports that Darkfost posted on X platform stating that BTC funding rates on Binance have turned negative, dropping to -0.0073%, indicating strong short demand in the derivatives market. Binance's funding rate formula uses a 0.01% interest rate parameter, so a neutral funding rate is not 0%. The last time a similar situation occurred was in June this year, when BTC was priced at approximately $62,000.

Darkfost noted that this week's U.S. CPI and PPI both came in above expectations, fueling market expectations of future Fed rate hikes. BTC experienced a pullback after breaking above $87,000 several days ago. Currently, two price levels warrant attention: $80,000 and $74,000.