$BTC
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Sharp Decline in Bitcoin Prices Amid Political Friction
In the world of cryptocurrency, Bitcoin’s price plummeted sharply within the last 24 hours, approaching the critical $100,000 level with a low of $100,984. This decline in value is a direct result of the heightened market volatility triggered by a recent public disagreement on social media between US President Donald Trump and Tesla CEO Elon Musk. This confrontation sparked a risk-off wave among traders, leading to a 4% drop in the global crypto market cap from $3.4 trillion to $3.33 trillion.
Derivative Data Signals Growing Bearish Sentiment
According to CryptoQuant analyst Darkfost, a significant shift occurred in the Binance net taker volume, which plummeted from $20 million to -$135 million in less than eight hours. This drastic change is an indication that traders are quickly moving to hedge against or capitalize on the downside risk, a reaction to the unfolding traders news that dominates the headlines. Darkfost highlighted this as the largest intraday reversal of net taker volume on Binance observed this year, pointing to a swift shift in market sentiment due to macro-level influences and prominent public figures.
Negative Funding Rates: A Signal for Potential Reversal?
The situation further influenced the BTC perpetual futures funding rates on Binance, which turned negative, moving from +0.003 to below -0.004. This shift suggests that short sellers are now paying a premium to hold their positions, an indication of heightened fear and possibly overextended bearish bets. Historically, such deeply negative funding rates have oftentimes been followed by robust price recoveries in Bitcoin. Darkfost noted three instances where similar funding shifts preceded significant rallies, suggesting that extreme pessimism might be an indicator of potential market turning points.
For more detailed updates on market trends and traders news, you can always check [Financier News](https://www.financier.news/).
As the market watches for signs of a potential short squeeze, which could force short sellers to cover their positions and drive prices up, the sentiment remains cautious yet observant of possible bullish reversals.
For further insights and up-to-date information on cryptocurrency trading, consider visiting [Binance](https://www.binance.com/).
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