Analyst: Bitcoin Funding Rate Drops to Lowest Level Since 2023, Signaling Potential Bottom

April 16th CoinDesk analyst James Van Straten notes Bitcoin’s funding rate has hit its most negative level since 2023 — a signal history ties to temporary market bottoms, per Glassnode data. The seven-day moving average of the rate now sits around -0.005%. Perpetual contract funding rates are fees longs and shorts pay each other to align contract prices with spot markets: positive rates mean longs pay shorts (bullish sentiment), negative rates mean shorts pay longs (bearish lean). Notably, Bitcoin rallied from $60k-$65k to ~$75k between March and April this year — even as funding rates stayed negative. History links deeply negative funding rates to Bitcoin’s temporary lows: March 2020 (COVID crash, ~$3k), 2021 (China mining ban, $30k), November 2022 (FTX collapse, ~$15k), 2023 (Silicon Valley Bank crisis, briefly below $20k), August 2024 (yen carry trade unwind), and April 2025 ("Liberation Day" sell-off). Persistent negative rates now signal shorts remain elevated despite rising prices — a deviation pointing to a "wall of worry" climb. A wave of short covering could further fuel Bitcoin’s upside.