Bitcoin's (CRYPTO:BTC) funding rate, often celebrated by bulls when negative, is currently flat, prompting debate over its significance as a buying opportunity.
Historical data suggests a correlation between negative funding rates and preceding bull markets, but caution is advised as these periods ranged widely in duration and external factors may have influenced price movements.
Recent events like Silicon Valley Bank's intervention and conflicts in the Middle East have impacted Bitcoin's funding rate, highlighting its sensitivity to external factors.
While reduced interest in leveraged long positions reflects recent price movements, analyzing stablecoin demand in China suggests underlying market sentiment remains stable, potentially indicating a future rise in the BTC funding rate as confidence returns.