Analysis: Bitcoin funding rate drops to -6%, potentially triggering a short squeeze market

CycleProphet · 2026-02-28T11:21:22+00:00

Bitcoin perpetual contract funding rate drops to -6%, the lowest in three months, indicating increased market bearish sentiment. Despite price fluctuations, open interest has grown, and market participation has increased. In the past 24 hours, over $500 million in positions have been liquidated, with long positions accounting for the majority. Bitcoin is testing the $64,000 level again, potentially triggering a short squeeze.

CycleProphet

2026-02-28 11:21:22

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Deep Tide TechFlow News, on February 28, according to Coindesk, data from CoinGlass shows that the funding rate for Bitcoin perpetual contracts has dropped to -6%, reaching one of the lowest levels in three months. This indicates that after the US and Israel launched strikes on Iran, Bitcoin briefly fell to $63,000, and the market experienced aggressive short positions.

At the same time, the open interest of coin-margined contracts increased from 668,000 BTC to 687,000 BTC, suggesting that despite price fluctuations, market participation remains strong. Negative funding rates typically indicate a bearish sentiment, with traders willing to pay a premium to maintain short positions.

In the past 24 hours, over $500 million in positions have been liquidated in the cryptocurrency market, with long liquidations exceeding $420 million. Currently, Bitcoin is attempting to retake the $64,000 level, and market analysis suggests a potential short squeeze may occur.

BTC1.28%

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