Bitcoin Funding Rates Flip Negative as Nasdaq Futures Plunge

Bitcoin Funding Rates Turn Negative as Nasdaq Futures Plunge by 700 Points

Bitcoin's funding rates have flipped negative, signaling a bearish sentiment in the market, as Nasdaq futures tanked by 700 points. This development comes amidst a growing correlation between Bitcoin and the tech-heavy Nasdaq index, which has been experiencing a significant downturn.

Standard Chartered analyst Geoffrey Kendrick has been advocating for a 'buy the dip' strategy for Bitcoin, given its increasing correlation with the Nasdaq. Kendrick, who leads the Foreign Exchange and Digital Asset Research team at the bank, emphasized that the correlation between Bitcoin and the Nasdaq significantly exceeds its relationship with gold.

Kendrick warned that ongoing Nasdaq liquidations could impact Bitcoin levels, particularly with key earnings announcements from major firms like Microsoft, Meta, and Tesla scheduled. He noted that the average buying price of Bitcoin ETFs since the last US election has reached $96,400.

Kendrick also raised concerns regarding the recent executive order from the Trump administration aimed at evaluating the country’s digital asset reserves, highlighting potential market unpredictability. He expressed disappointment over the implications of the term “reserves” and the prolonged timeline for potential congressional clarifications.

As market phases transition, Kendrick forecasts a shift towards a “buying the dip” strategy amid diminishing hope and confusion. He has previously outlined stages of market sentiment, envisioning significant institutional investment during this phase. Standard Chartered has set ambitious targets, projecting Bitcoin could reach $200,000 and Ethereum $10,000 by year’s end.