Bitcoin (BTC) saw a sudden shift in market sentiment as tensions rose between US President Donald Trump and Tesla CEO Elon Musk, leading to negative funding rates on Binance. This dramatic shift signifies increasing fear among investors in the face of growing uncertainty.
As reported by CryptoQuant contributor Darkfost, BTC funding rates on Binance switched from positive to negative. This change occurred despite the leading cryptocurrency trading above the $100,000 threshold at the time of reporting.
The sudden funding rate reversal, from +0.003 to -0.004, is believed to be a result of the public disagreement between Trump and Musk on social media platforms. Following this change in sentiment, BTC’s price fell from the mid-$100,000s to a low of $100,984, as per CoinGecko data. Over the last fortnight, the digital asset’s value has dropped by 4.1%.
However, this dip might present a golden opportunity for investors. A strong BTC rebound could lead to increased buying pressure, potentially triggering a short squeeze that could further elevate BTC’s price.
Darkfost indicated that there have been three instances in the current market cycle where BTC experienced such deep negative funding. Each instance was succeeded by a significant upward price movement. For instance, on October 16, 2023, and September 9, 2024, BTC rallied from $28,000 to $73,000 and $57,000 to $108,000, respectively following a dip into negative funding territory. The most recent case was on May 2, 2025, with BTC jumping from $97,000 to a new all-time high (ATH) of $111,000.
Bitcoin whales, or large BTC holders, continue to accumulate the digital asset. New whales have reportedly added BTC worth $63 billion to their holdings, signalling strong confidence in the cryptocurrency’s future performance.
Backing this bullish outlook, a recent analysis by QCR Capital suggests that large investors predict BTC could reach as high as $130,000 by the end of Q3 2025. Furthermore, the realized cap held by long-term holders has exceeded $20 billion, further bolstering positive sentiment.
Despite this optimism, some analysts are preaching caution, predicting a BTC crash below the $100,000 mark before a bullish resurgence. At the time of writing, BTC is trading at $104,069, down 0.5% in the last 24 hours.
