Bitcoin funding rates have remained negative for 46 consecutive days, marking one of the longest sustained periods of bearish positioning in recent market history.
Such prolonged negative funding indicates that short traders are consistently paying fees to maintain their positions, reflecting strong market sentiment tilted toward downside expectations.
Notably, the last time funding rates stayed negative for a similar duration was during the market bottom following the FTX collapse in late 2022 — a period that ultimately marked a major turning point for Bitcoin.
Market analysts interpret this divergence as a potential signal of accumulation, where so-called “smart money” gradually builds positions while retail traders remain positioned for further declines.
If this pattern holds, the current environment could set the stage for a short squeeze scenario, where a rapid price increase forces short sellers to close positions, amplifying upward momentum.