BTC tries to reclaim $64,000 as funding rates hit three-month low

Bitcoin is attempting to reclaim $64,000 after sliding as low as $63,000 following U.S. and Israeli strikes on Iran, a move that has set up the potential for a short squeeze. Perpetual futures funding rates plunged to -6%, the second-lowest level in three months; the last comparable reading came on Feb.

6, when bitcoin bottomed near $60,000. Funding reflects the periodic payments between traders in perpetual futures: when positive, longs pay shorts; when negative, shorts pay longs. Coin-margined open interest rose from 668,000 BTC to 687,000 BTC over the past 24 hours.

Measuring open interest in BTC terms removes distortion from price swings, and the combination of rising open interest and negative funding suggests growing participation with an increasing share of traders positioned for further downside.

Iran

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