Bitcoin sets up potential short squeeze as funding plunges to -6%

Negative funding rates, rising open interest and liquidations point to crowded positioning and heightened derivatives activity. What to know : Perpetual funding rates dropped to -6%, matching the most negative level in three months, signaling aggressive short positioning as bitcoin briefly fell to $63,000. Coin margined open interest climbed to 687,000 BTC, indicating increased participation despite the price swing.