Red Funding Rates Preceded 80% Bitcoin Surge — Is BTC Set to Pump Again?
Standard Chartered has also raised an optimistic outlook for BTC. As noted in our earlier post, the global bank targeted BTC at $135,000 in Q3. This projection aligns with an earlier forecast from Berstein Research, as detailed in our last news piece.
- Bitcoin futures funding rates flipped negative, suggesting a potential price rebound ahead.
- Momentum for Bitcoin is improving with BTC eyeing the ATH.
The Bitcoin (BTC) futures funding rates have brought optimism for bulls. Notably, this metric flipped negative in late June. During this period, the BTC spot price climbed from below $100,000 to $108,000.
In the past, such a divergence indicated a major price boom ahead for Bitcoin. In one cycle, the price of BTC surged 80%.
Will Bitcoin Price Follow Historical Trends
Onchain data analytics platform CryptoQuant revealed that the Bitcoin futures perpetual funding rates have turned negative. A negative funding rate means short-position holders are paying long traders to maintain their contracts. This is typically a sign of bearish market sentiment.
However, a persistent negative rate may suggest the market is oversaturated with bearish bets. This could precede a price rebound if shorts are forced to buy back their positions.
When futures funding rates slipped in September 2024 and July 2023, BTC soon experienced 80% and 150% gains, respectively. Considering this performance, the leading coin may be gearing up for fresh rallies ahead. Analysts claimed the bearish reset may have already played out.
Bitcoin Funding Rates | Source: CryptoQuant
According to CoinGlass liquidation data, $111,320 on the BTC/USDT pair shows the highest concentration of predicted liquidations in the past three months. Within this price level, the data revealed an estimated $520.31 million in leveraged positions at risk.
This liquidity, if tapped, could trigger a short squeeze. In this case, forced buybacks from short traders could drive prices higher.
Two major factors that influenced the latest BTC rally are ETF inflows and fading confidence in fiat strength. In a recent update, we covered that the US dollar declined nearly 11% in 2025, reaching lows not seen in decades.
Amid the weakened dollar, the US spot Bitcoin ETFs recorded over $4.63 billion of net inflows in just three weeks. Long-term holders continue to buy Bitcoin. In H1 2025, Bitcoin minted over 26,000 millionaires, indicating its soaring adoption.
BTC Moves Closer to ATH
Bitcoin, the leading cryptocurrency, is currently trading at $110,306. In the last 24 hours, the BTC price has increased by 2.3%.
The daily trading volume also surged over 24% to $58.4 billion. The rally indicates that momentum has resumed as investors show renewed interest in the coin.
Based on the latest price performance, BTC is moving closer towards its All-Time High (ATH) of $111,924. Technical analysis also points to a potential rally on the horizon.
Analyzing the daily chart revealed a breakout above the upper trendline of a bull flag pattern. The movement of this pattern points to a potential target near $117,500, based on the prior flagpole. This price closely aligns with $116,000 forecasted by 10x Research’s Markus Thielen for the end of July.
