Diverging From Traditional Markets

On March 7, the S&P 500 was trading above 5,700 points. Today, it has dropped below the 5,200 level. In contrast, Bitcoin has managed to recover its recent losses and move upward. While BTC is still down over 5% year-to-date, it has seen a strong rebound from its April 8 low.

Back then, Bitcoin was nearly 20% lower since the start of the year and had dropped almost 30% from its all-time high near $109,000 in January. That move marked the deepest correction of this cycle, even sharper than the August 2024 dip to $49,000.

Negative Funding Rates and Short Squeeze Setup

Another key detail is the negative perpetual funding rate across futures markets. This suggests that short sellers are paying long positions to keep trades open — a situation that can trigger short squeezes and drive prices even higher as shorts rush to exit.

ETF Inflows Fuel Momentum

Adding to the bullish sentiment, over $380 million flowed into U.S. spot Bitcoin ETFs on Monday, the largest daily inflow since January 30.

With the Nasdaq rising more than 1% during what’s been dubbed a “Turnaround Tuesday,” Bitcoin may have more room to climb, despite upcoming technical resistance levels.

This latest move by BTC reflects growing investor appetite for risk and underscores the impact of rising ETF demand on crypto market dynamics.

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The post Bitcoin Breaks $90K! Is the Rally Gaining Strength? appeared first on Coin Engineer.