The funding rate for bitcoin perpetual futures contracts is fluctuating between positive and negative, indicating uncertainty in the market. This comes as bitcoin is experiencing a decline and hovering around $80,000, causing traders to seek direction. Typically, in bull markets, the funding rate remains positive, but recently it has gone negative. Historically, sustained negative funding rates have coincided with bearish sentiment and bitcoin bottoms. However, in the past two weeks, traders have been shifting positions with each bitcoin rally, resulting in long liquidations when the price reverses and preventing a sustained period of negative funding rates.



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