Connect with us

Bitcoin

Bitcoin Funding Rates Flip Negative as Nasdaq Futures Tank 700 Points

Published

3 months ago

on



Bitcoin (BTC) market sentiment has turned bearish, with Wall Street’s tech-heavy Nasdaq futures trading 700 points lower. The risk aversion is driven by concerns that the cost-effective Chinese artificial intelligence startup DeepSeek could significantly challenge U.S. technological dominance.

Bitcoin’s perpetual futures funding rates, periodic payments made between long and short positions in perpetual futures contracts, have flipped negative, according to data source Velo Data. It’s a sign of more bearish sentiment in the market – traders are chasing short positions in anticipation of lower prices.

The leading cryptocurrency by market value has dropped over 3% since early Asian hours, reaching lows under $98,000 at one point, according to CoinDesk data. Futures tied to Nasdaq have dropped over 3.5%, with NVIDIA, the bell-wether for all things AI, down 10% in pre-market trading.

“Today’s sell-off comes after President Donald Trump last week gave the green light to a working group on crypto policy that notably stopped short of confirming that the US would set up a bitcoin reserve. Meanwhile, Chinese artificial intelligence startup DeepSeek appears to have spooked tech stocks as its success suggests it is possible to build AI models that cost less than AI incumbents in the U.S.,” Petr Kozyakov, co-founder and CEO at Mercuryo, said in an email.

Historically, however, the negative flip in funding rates has tended to mark local price bottoms. Besides, there is always a risk of a short squeeze – bears throwing in the towel and squaring off their bets, putting upward pressure on prices. That said, the funding rate has narrowly flipped bearish, meaning its too early to call short BTC as an overcrowded trade.





Source link

Related Topics:
Continue Reading

Bitcoin

Bitcoin Price Holds Steady, But Futures Sentiment Signals Caution

Published

3 hours ago

on

April 17, 2025

By


Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.


Este artículo también está disponible en español.

According to a recent CryptoQuant Quicktake post, while Bitcoin (BTC) has seen a steady rise in price from November 2024 to February 2025, sentiment in the cryptocurrency’s futures market has not shown a corresponding uptick.

Bitcoin Futures Sentiment Index Signals Caution

Bitcoin’s price surged from approximately $74,000 in November 2024 to a peak of $101,000 by early February 2025. However, following US President Donald Trump’s tariff announcements, risk-on assets – including BTC -have experienced a significant pullback.

After hitting a potential local bottom of $74,508 earlier this month on April 6, the apex cryptocurrency has recovered some of its recent losses. The top digital asset is trading in the mid $80,000 range at the time of writing.

Despite this recovery, BTC’s futures sentiment has continued to decline since February. Even as the price holds near local highs, sentiment in the futures market has notably cooled.

CryptoQuant contributor abramchart highlighted this divergence, noting that it could indicate increasing caution or profit-taking behavior despite the ongoing bullish trend. The analyst commented:

This indicates a cooling interest or increased fear in the futures market, possibly due to macroeconomic uncertainty, regulatory concerns, or expected corrections.

A look at the BTC futures sentiment index shows a resistance zone around 0.8 and a support level near 0.2. The index is currently hovering around 0.4, pointing to a predominantly bearish sentiment across futures markets.

cq
The BTC Futures Sentiment Index currently hovers around 0.4 | Source: CryptoQuant

Similarly, Bitcoin’s average price has steadily declined from its early 2025 highs. It is now ranging between $70,000 and $80,000, signalling possible market indecision amid heightened tariff tensions.

According to abramchart, if futures sentiment remains low, BTC could face extended price consolidation or even downward pressure in the near term. However, any emerging bullish catalyst could quickly shift the sentiment and renew upward momentum.

Is BTC Close To A Momentum Shift?

Some analysts believe Bitcoin may be nearing a breakout. After consolidating in the mid-$80,000s for several weeks, on-chain metrics suggest BTC may be undervalued at current levels. Indicators such as BTC exchange reserves and the Stablecoin Supply Ratio support this view.

In addition, momentum indicators like Bitcoin’s weekly Relative Strength Index have begun to break out of a long-standing downward trendline – raising hopes for a potential bullish rally back toward $100,000.

However, several risks still remain. The recent appearance of a ‘death cross’ on BTC’s price chart – combined with persistent macroeconomic concerns related to trade tariffs – could still weigh heavily on market sentiment. At press time, BTC trades at $83,917, down 1.8% over the past 24 hours.

bitcoin
BTC trades at $83,917 on the daily chart | Source: BTCUSDT on TradingView.com

Featured image from Unsplash, Charts from CryptoQuant and TradingView.com



Source link

Continue Reading

Bitcoin

Panama City Approves Bitcoin And Crypto Payments For Taxes, Fees, And Permits

Published

3 hours ago

on

April 17, 2025

By


In yet another milestone for Bitcoin adoption in Latin America, the Panama City Council has voted to approve the acceptance of Bitcoin and other digital currencies for municipal services, making it the first public institution in the country to do so.

The news was announced by Panama City Mayor Mayer Mizrachi on X (formerly Twitter), who stated:

“Panama City council has just voted in favor of becoming the first public institution of government to accept payments in Crypto. Citizens will now be able to pay taxes, fees, tickets and permits entirely in crypto starting with BTC, ETH, USDC, USDT.”

This decision sets Panama City on a more progressive path, enabling residents to interact with their local government using Bitcoin for everyday transactions. Mizrachi also explained how this was achieved without the need for new legislation, a hurdle that had stalled previous efforts.

“Prior administrations tried to push a bill in the senate to make this possible, but we found a simple way to do it without new legislation. Legally, public institutions must receive funds in $, so we partner with a bank who will take care of the transaction—receiving in crypto and convert on spot to $. This allows for the free flow of crypto in the entire economy and entire government.”

The Panama City Mayor’s Office further confirmed the news on its official social media channels, saying:

“We will soon become the first public institution in the country to allow payment for municipal services in cryptocurrency, through an authorized bank that will be responsible for converting the proceeds into dollars for the Mayor’s Office.”