Bitcoin Funding Rate Turns Negative As Traders Short Top Altcoins
Highlights
- Along with Bitcoin similar bearish trends are observed in altcoins like Binance Coin (BNB) and Cardano (ADA).
- Solana (SOL) stands out, ranking as the 6th lowest funding rate among tracked assets.
- Spending by long-term Bitcoin holders (1-5 years) has surged to $4.02 billion.
Amid the repetitive rejection above $110,000 levels, Bitcoin funding rates have turned negative as the BTC shorts pile up. This highlights growing bearish sentiment with spending from the long-term BTC holders on the rise as well. Similarly, short positions have also built up for some of the top altcoins such as Cardano (ADA), and Binance Coin (BNB).
Bitcoin and Altcoins Funding Rate Hints Correction Ahead
Blockchain analytics platform Glassnode has revealed a notable shift in the market as the Bitcoin funding rate turned negative, signaling growing bearish sentiment. BTC bulls have failed to sustain above $110K level, giving the shorts an upper hand.
A negative funding rate in perpetual futures trading shows that short traders have the upper hand over long traders, highlighting that the market condition is flipping bearish. But the Glassnode data shows that apart from BTC, a similar situation appears across top crypto market altcoins as well.
As per the image below, short positions are quietly increasing across the top 10 cryptocurrencies, including Binance Coin (BNB) and Cardano (ADA), both of which are showing signs of heightened pressure.
As per the Glassnode data, Solana (SOL) has emerged as a significant outlier, ranking as the 6th lowest funding rate among all assets. has emerged as a significant outlier, ranking as the 6th lowest funding rate among all assets.
Long-Term BTC Holders on a Spending Spree
Glassnode has further reported that a significant surge in spending by older Bitcoin (BTC) holders, with aggregate outflows reaching $4.02 billion, from cohorts holding BTC for 1–5 years. This marks the highest level of spending since February 2025 and the 5th-largest spike of this cycle.
As per the breakdown provided by Glassnode, holders with 3-5 years of BTC holdings have spent $2.16 billion, representing their second-largest outflow this cycle. Similarly, those in 2-3 Year category have sold $1.41 billion, while those holding BTC for just 1-2 years have spent $450 million.
On the other hand, corporate players like Metaplanet have continued to purchase BTC over the past weeks. In the latest development, GameStop (GME) announced the purchase of 4,710 BTC amid the ongoing Bitcoin 2025 conference.
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