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Negative Funding Rates and Coinbase Premium: Indicators of a Bearish Market
A notable feature of recent Bitcoin price decline is that, in addition to negative Funding Rates on various exchanges, Coinbase Premium has also turned negative. A negative Funding Rate indicates that Futures price is below Spot price, suggesting a dominance of short positions. Meanwhile, negative Coinbase Premium suggests increased spot selling on Coinbase, possibly pushing its Spot price below that of other exchanges. On the chart, Funding Rate clearly falls below zero, signaling growing short positions, and the continued negative Coinbase Premium confirms dominant selling pressure in Spot market. These figures together highlight a strong bearish sentiment among market participants, with short-selling pressure outpacing that of long positions in this recent downturn. All of these findings are strictly based on what can be observed from the chart, offering a glimpse into the overall market mood.