Bitcoin bears pile in as funding rates hit extreme lows

Bitcoin ($BTC) failed to hold its move toward $80,000 after a sudden wave of selling hit the derivatives market. The price dropped about 2.5% within a few hours and moved back below $78,000.

CryptoQuant analyst Darkfost said there was no clear announcement behind the move. He linked the correction to strong sell activity in futures markets as $BTC approached the $80,000 zone.

Darkfost said Binance recorded about $1.2 billion in sell volume within one hour. Across all exchanges, Bitcoin saw about $1.35 billion in selling pressure during the same period.

The analyst said the data shows Binance remains a key venue for Bitcoin derivatives activity. The sharp move forced $BTC to reverse before breaking the $80,000 level.

Funding rates remain deeply negative

Darkfost also noted that Bitcoin funding rates have stayed highly negative for several weeks. He said the 30-day cumulative funding rate has reached -7%, one of the lowest readings on record.

Such negative funding can create short-term pressure when traders build aggressive short positions. However, late short entries can later turn into buying pressure if prices move against them.

On-chain data points to stronger holders

Another CryptoQuant analyst, GugaOnChain, said Bitcoin’s current cycle looks different from past panic phases. He argued that large holders did not sell heavily during the recent geopolitical shock.

The analyst said Bitcoin saw early de-risking after the 2025 top. He said weak hands sold during the decline, while stronger investors absorbed supply near lower price zones.

GugaOnChain also pointed to Bitcoin’s realized price and spot recovery as signs of stronger market structure. He said the spot price recovered toward $79,000 while realized price stayed near $54,100.

The analyst added that Binance reserves fell by about 44,000 $BTC after the shock. He described this as evidence that coins moved away from exchanges and into longer-term storage.

Bitcoin now trades in a market split between short-term derivatives pressure and stronger spot behavior. Traders are watching whether negative funding will keep weighing on price or create conditions for a short squeeze.