TechFlow reported on February 2 that according to Coinglass data, as Bitcoin's price continues to decline, perpetual contract funding rates on major exchanges have turned negative, reflecting a bearish shift in market sentiment. On Binance, the BTC funding rate dropped to -0.0009%, while on OKX it fell to -0.0022%.
Previously, analysts noted that a brief turn to negative Bitcoin funding rates typically signals the formation of a "local bottom." Historical data shows that when funding rates shift from positive to negative, it is often accompanied by leveraged position liquidations and a change in market sentiment. However, this signal should be assessed in conjunction with other technical indicators and cannot simply be interpreted as a clear sign of market bottoming.
