According to ChainCatcher, Bitcoin’s 30-day average funding rate on perpetual contracts has remained negative for 66 consecutive days—the longest stretch in a decade—as BTC climbed to around $81,000. In this environment, short positions pay longs an annualized cost of approximately 12%. Despite the negative funding rate, Bitcoin rose about 12% in April with open interest growing 12%, indicating no panic-driven shorting. Analysts attribute the phenomenon primarily to institutional hedging activities, including hedge fund futures shorting during redemption cycles, basis trading strategies, and miners hedging Bitcoin holdings while transitioning to AI computing services. Historical data shows buying Bitcoin during similar negative funding rate periods yields positive returns within 90 days with a probability of 83% to 96%.
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