Bitcoin Price Movement and Funding Rates Signal Mixed Sentiment in Crypto Markets

Bitcoin rose to $69,000 on February 26, with funding rates on major centralized (CEX) and decentralized (DEX) exchanges indicating a slight weakening of bearish sentiment. Funding rates, which help align perpetual contracts with spot prices, show market positioning and sentiment. Rates above 0.01% signal bullishness, while those below 0.005% suggest bearishness.

Despite the price increase, derivatives markets show growing bearish sentiment as funding rates have plunged deep into negative territory in recent days. Short sellers are paying long traders to maintain bearish positions, reflecting expectations of further declines.

Gracy Chen, CEO of Bitget, noted that the crypto market is waiting for clearer macroeconomic catalysts before a sustained recovery can begin. Macro pressures, including US tariff hikes, deleveraging, and uncertainty around Fed policy, are influencing investor sentiment.

Why the Move Happened

Bitcoin's price movement is closely tied to funding rates and macroeconomic factors. Institutional outflows from U.S. Bitcoin ETFs have driven sell pressure, with a 60% correlation observed between Bitcoin and the S&P 500.

Stablecoin supply has also declined by 15%, reducing liquidity and increasing pressure on Bitcoin prices. Global trade tensions have further contributed to capital flight from crypto markets.

Funding rates have fluctuated as Bitcoin oscillates between $63,000 and $69,000. On February 24, Bitcoin dipped below $63,000, with funding rates returning to positive territory but remaining largely bearish .

Nvidia's upbeat Q1 revenue outlook has provided a broader sense of calm in markets, influencing sentiment across asset classes. Bitcoin topped $69,000 in response to improved macroeconomic expectations.

What Analysts Are Watching

Crypto derivatives markets reflect shifting sentiment as Bitcoin trades near key support levels. Negative funding rates indicate traders are betting on further declines, with short sellers willing to pay longs to keep positions open.

TBD, a prediction market protocol, raised $3 million and aims to measure verified human sentiment. The platform ensures every respondent is a unique verified human, enabling large-scale, bot-resistant inputs.

Investors remain cautious until macroeconomic visibility improves. In Asia, trading volumes remain subdued, and users tend to prefer buying strength rather than weakness.

Bitcoin's funding rates continue to hover near neutral levels, with the market awaiting clearer signals before committing to bullish or bearish positions.