$BTC
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Bitcoin Price Drops Amid Political Tensions and Trader Pessimism
In the latest traders news, Bitcoin (BTC) experienced a significant drop, nearing the $100,000 threshold with a recorded low of $100,984 in the past 24 hours. This drop is tied to increased market volatility following a heated social media exchange between US President Donald Trump and Tesla CEO Elon Musk. This clash led to a bearish sentiment among traders, causing the global crypto market cap to decrease by 4%, from $3.4 trillion to $3.33 trillion.
Derivative Data Indicates Growing Bearish Sentiment
Traders news highlights a notable shift in the crypto derivatives market. CryptoQuant analyst Darkfost reported a severe drop in the Binance net taker volume, plunging from $20 million to -$135 million in less than eight hours. This dramatic change, the largest seen this year on Binance, signals a swift change in trader sentiment, heavily influenced by macro-level events and high-profile public figures.
Negative Funding Rates Point to Market Fear
The situation also impacted BTC perpetual futures funding rates on Binance, which shifted from slightly positive to decidedly negative, falling from +0.003 to below -0.004. This change shows that short sellers are currently paying a premium to hold onto their bearish bets amidst growing market uncertainties.
Historical Data Suggests Possible Market Reversal
Despite the current bearish outlook, historical trends in Bitcoin’s pricing suggest potential for a reversal. Darkfost pointed out instances where similar shifts in funding rates preceded significant price rallies in Bitcoin, such as the jumps observed in October 2023, September 2024, and May 2025. Although past performance is not indicative of future results, these patterns provide a glimmer of hope for traders anticipating a market rebound.
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