Bitcoin's Negative Funding Rate Sparks Bullish Reversal Hopes

Bitcoin's funding rate has turned negative for the seventh time in a year, according to data from CryptoQuant. Historically, this indicator has signaled a strong bullish reversal for BTC. The funding rate reflects the cost of holding leveraged positions in perpetual futures contracts, indicating that traders have become overly bearish and signaling a local bottom, which is often a precursor to a significant rebound.

If history repeats itself, the market may soon shift to a bullish trend. Currently, traders are closely watching the liquidity level below $98,000 and see $100,000 as a strong support to initiate the first step of price discovery. Breaking this level could trigger increased buying pressure. To fully restore the bullish momentum and change market sentiment, BTC would need to reclaim the key level of $103,600.

In other news, the SEC has announced the top ten priorities of its crypto working group and officially launched its website. The working group aims to address the challenges and opportunities presented by the rapidly evolving crypto market.

Meanwhile, the AI market has experienced a 'DeepSeek Panic,' with Binance predicting that the DeFAI market cap will reach $10 billion by the end of 2025. The crypto market has seen significant developments during the Chinese New Year, with several notable news stories that may have been missed by investors.