Analyst: Bitcoin funding rate drops to lowest level since 2023, may indicate bottom formation BlockBeats news, on April 16th, CoinDesk analyst James Van Straten posted that Bitcoin funding rates have fallen to their most negative level since 2023, and historical patterns show that such signals often coincide with market bottoms. According to Glassnode data, the seven day moving average of funding rates has dropped to approximately -0.005%. The funding rate is a fee paid by both long and short parties in a perpetual contract on a regular basis to keep the contract price consistent with the spot market. When the rate is positive, long positions pay short positions, reflecting the market's bullish sentiment; When the rate is negative, short sellers pay long sellers, indicating a market bias towards short selling. Despite continuous negative funding rates from March to April this year, Bitcoin still fluctuated upwards from a range of $60000 to $65000 to around $75000. Historically, the negative depth of the capital rate often coincides with the periodic bottom of Bitcoin: in the market crash caused by the COVID-19 in March 2020, Bitcoin fell to about 3000 dollars; During the 2021 mining ban announced by China, the price dropped to $30000; When FTX crashes in November 2022, it hits a bottom of about $15000; During the 2023 Silicon Valley banking crisis, it briefly fell below $20000. During the closing of the Japanese yen arbitrage trade in August 2024 and the "Liberation Day" sell-off in April 2025, negative capital rates also appeared simultaneously with the period low. The continuous negative funding rate indicates that even if the price trend is positive, short positions are still at a high level. This divergence may indicate that the market is climbing within the 'wall of concern', and a large number of short positions may become fuel for further price increases.