Bitcoin’s funding rate turns negative, but have traders turned bearish?

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Bitcoin price continues to soften, but $251 million in inflows to the spot Bitcoin ETFs is a show of the markets’ strength.

Bitcoin (BTC) marked its highest daily close in over two years on Feb. 20, but the $52,500 resistance posed a tougher challenge than expected, resulting in a rejection below $51,000 on Feb. 23.

The Bitcoin futures contracts’ funding rate briefly showed an excess of demand for short positions on Feb. 22, sparking speculation of potential further bearish momentum.

Considering Bitcoin posted a 33.5% year-to-date gain in 2024, bears have little cause for celebration, but some analysts believe that the $1 trillion market capitalization at $50,930 may represent a local top. While this level lacks inherent significance beyond being a round number, it has garnered attention from mainstream media, potentially instigating fear among investors.

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