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As political tensions between US President Donald Trump and Elon Musk escalated yesterday, the Bitcoin (BTC) market skilled a pointy shift in sentiment, with the funding fee on Binance flipping from constructive to unfavourable inside hours.
Bitcoin Funding Charges Flip Adverse On Binance
In response to a CryptoQuant Quicktake put up by contributor Darkfost, BTC funding charges on Binance have as soon as once more turned unfavourable, at the same time as the highest cryptocurrency continues to commerce above the $100,000 mark on the time of writing.
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The analyst attributed the sudden reversal in funding – from +0.003 to -0.004 – to the general public spat between Trump and Musk on social media. This fast shift displays rising concern amongst market individuals amid heightened uncertainty.
Following the sentiment shift, BTC fell from the mid-$100,000 vary to a low of $100,984, based on CoinGecko. Over the previous two weeks, the asset has declined by 4.1%.
That stated, the present dip could supply a main shopping for alternative to buyers. If Bitcoin rebounds strongly, it might end in a powerful resurgence in shopping for stress, resulting in a brief squeeze which will propel BTC’s worth additional up.
Darkfost highlighted that there have been three situations throughout the present market cycle when BTC witnessed such deep unfavourable funding. Notably, every of those situations have been adopted by a powerful upward transfer within the cryptocurrency.
For instance, on October 16, 2023, BTC dipped into unfavourable funding territory earlier than rallying from $28,000 to $73,000. The same sample performed out on September 9, 2024, when the asset surged from $57,000 to $108,000.
The newest case was on Might 2, 2025, when BTC jumped from $97,000 to a brand new all-time excessive (ATH) of $111,000. If historical past repeats, then the market may even see a brand new ATH for BTC within the coming weeks. Darkfost famous:
Such excessive readings typically mark moments of most pessimism, exactly the form of sentiment that may precede a powerful bullish reversal when the brief time period negativity is gone.
Giant Traders Enhance BTC Publicity
In the meantime, Bitcoin whales – wallets holding giant quantities of BTC – proceed to build up at a fast tempo. Notably, new whales have acquired BTC value $63 billion, reflecting robust confidence within the asset’s near-term prospects.
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Supporting this bullish outlook, latest evaluation by QCR Capital signifies that enormous buyers anticipate BTC to surge to as excessive as $130,000 by the top of Q3 2025. Moreover, the realized cap held by long-term holders has surpassed $20 billion, reinforcing constructive sentiment.
That stated, some analysts urge warning, anticipating BTC to crash beneath $100,000 earlier than resuming its bullish momentum. At press time, BTC trades at $104,069, down 0.5% up to now 24 hours.
Featured picture from Unsplash, charts from CryptoQuant and TradingView.com