TechFlow news, according to Coinglass data, the BTC perpetual contract funding rate has dropped to around -0.03%, the first time in nearly two months. The main reason is yesterday's sharp decline in BTC price, which triggered liquidations of approximately $135 million worth of long positions, forcing traders to close their long futures positions. The funding rate is expected to turn positive again once the market stabilizes.
In addition, total open interest across the entire market has decreased by about $1 billion, with long positions notably reduced while short positions have continued rising for a third consecutive month. This indicates that long positions were repeatedly stopped out during the market downturn, creating a certain degree of margin squeeze. The overall long-to-short ratio for futures accounts stands at 2.79, suggesting retail investors continue to use derivatives to bet on BTC price increases despite the downtrend. Going forward, attention should be paid to whether wick-like price movements trigger sustained liquidations, as this could signal a potential market reversal.
