Bitcoin funding rates hit lowest since 2023

Bitcoin's funding rates have reached their most negative levels since 2023, indicating substantial short positioning in the perpetual futures market. Despite this bearish sentiment, Bitcoin's price has continued to climb towards $75,000, a pattern historically associated with market bottoms. Past instances, such as in March 2020, mid-2021, and during the FTX collapse in 2022, saw deeply negative funding rates precede significant price recoveries. This divergence suggests that elevated short positions could fuel a future rally as bearish bets are unwound, with the market potentially climbing a 'wall of worry'.