BTC tries to reclaim $64,000 as funding rates hit three month low

CoinDesk

by James Van Straten

February 28, 2026

AI-Generated Deep Dive Summary

Bitcoin is showing signs of a potential short squeeze as funding rates drop to -6%, the lowest in three months, signaling heightened derivatives activity and crowded positioning. This decline follows Bitcoin's recent dip to $63,000 after U.S. and Israeli strikes on Iran, which sent shockwaves through financial markets. The negative funding rates, coupled with rising open interest in BTC terms, suggest increased participation among traders betting on further price drops. Perpetual futures funding rates, which hit -6% according to CoinGlass, indicate aggressive short positioning. When these rates are deeply negative, it often reflects bearish sentiment as shorts pay longs to maintain their positions. Over the past 24 hours, open interest in Bitcoin rose from 668,000 BTC to 687,000 BTC, showing growing involvement despite market volatility. However, this rise also highlights a shift toward downside bets, raising concerns about potential further price declines. The recent spike in liquidations adds another layer of complexity. CoinGlass reported over $500 million in crypto liquidations, with long positions bearing the brunt at $420 million. This forced selling underscores the risks of leveraged trading and the impact of geopolitical tensions on market sentiment. As traditional markets prepare to reopen post-weekend, analysts warn that Bitcoin could face additional downward pressure, potentially testing the $60,000 mark. Meanwhile, Iran's attacks on U.S. bases and Israel have escalated into

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Originally published on CoinDesk on 2/28/2026