Bitcoin failed to surpass $71,000, with its funding rates dipping into negative territory. This suggests increased bearish sentiment among traders, with shorts paying to maintain positions.
Despite moderate stress in Bitcoin perpetual futures, institutional inflows indicate sustained demand, potentially limiting the odds of a significant price correction. The annualized funding rate for Bitcoin perpetual futures has fallen to -7%.
Rising yields on US Treasuries and strength in gold are impacting Bitcoin's appeal as a store of value. However, ongoing net inflows into Bitcoin spot ETFs and products like MicroStrategy (MSTR) suggest strong accumulation. Analysts anticipate that sellers below $75,000 will eventually be exhausted, paving the way for a bull run.
