A sharp shift in funding rates, rising open interest, and elevated liquidation volumes collectively point to crowded bearish positioning in the futures market.

Funding Rates Drop to -6%

Bitcoin Perpetual futures funding rates fell to -6%, marking the second most negative reading in the past three months. The last time funding reached similarly depressed levels was on February 6, when Bitcoin formed a local bottom near $60,000.

Funding rates represent the periodic payments exchanged between long and short traders in perpetual futures markets. When rates are positive, long positions compensate shorts. When rates turn negative, short sellers pay long holders. Deeply negative funding typically reflects aggressive downside positioning, with traders willing to pay a premium to maintain bearish bets.

Such extreme readings often indicate one-sided sentiment, where a large portion of market participants are leaning heavily in the same direction.

Bitcoin Open Interest Climbs Despite Price Weakness

Over the past 24 hours, coin-margined open interest increased from 668,000 BTC to 687,000 Bitcoin. Measuring open interest in BTC terms removes distortions caused by price fluctuations and offers a clearer view of participation.

The combination of rising open interest and sharply negative funding suggests that new positions are being added, and that a growing share of traders are positioning for further downside. This buildup of short exposure increases the likelihood of a squeeze if price momentum shifts upward.

$500 Million in Liquidations

In the last 24 hours, more than $500 million in crypto positions were liquidated. Approximately $420 million of that total came from long positions, highlighting the scale of forced selling during the recent decline.

With many long positions flushed out and funding rates deeply negative, the market may now be tilted toward excessive short exposure.

$64,000 as a Trigger Level for Bitcoin

Bitcoin attempt to reclaim $64,000 is technically significant. A sustained move above that level could pressure heavily leveraged short positions, potentially triggering a cascade of liquidations and accelerating upward momentum.

Current derivatives metrics reflect elevated risk and crowded positioning. How price responds in the near term will determine whether this imbalance resolves through renewed downside—or a sharp short squeeze.

This content is not investment advice.

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The post Growing Signs of a Bitcoin Short Squeeze appeared first on Coin Engineer.

Political Easing Triggers Market Optimism

Statements from U.S. Treasury Secretary Scott Bessent regarding easing U.S.-China trade tensions, followed by former President Donald Trump’s remarks about substantially lowering tariffs on Chinese goods, were welcomed by markets. Trump also mentioned he has no plans to replace Federal Reserve Chair Jerome Powell.

Following these developments, Bitcoin surged by 6.79%, reaching close to $94,000—its strongest one-day performance since April 9. Ethereum climbed 11% to $1,175, marking its best day since April 2.

Open Interest Growth Reflects Investor Optimism

Platforms such as Binance, Bybit, OKX, Deribit, and Hyperliquid saw significant increases in open interest for perpetual futures contracts, signaling increased market engagement.

BTC perpetual futures open interest rose 10% to $17.83 billion, the largest single-day jump since early March. At that time, Trump had floated the idea of a strategic digital asset reserve that would include Bitcoin and Ethereum.

Joao Wedson, CEO of Alphractal Research, shared on X, “Bitcoin’s open interest grew faster than its price, with most positions originating from Binance. A large portion consists of long positions, so we might see heightened volatility in the short term.”

Short Squeeze and Funding Rates in Focus

The rally may have been supported by a short squeeze, as funding rates were negative 24 hours earlier—indicating a bearish tilt in the market. In such cases, rapid short position liquidations can accelerate price increases.

Ethereum mirrored Bitcoin’s momentum, with its perpetual open interest jumping nearly 16% to $6.60 billion, the biggest daily gain since November 27.

Positive Funding Rates Support the Rally

Funding rates for BTC and ETH are currently positive, ranging between an annualized 5% to 10%, indicating that long positions dominate.

These rates, paid every eight hours, are used to keep perpetual contract prices aligned with spot prices. A positive funding rate reflects that traders are willing to pay to hold long positions—often seen as a bullish sign.

Also, you can freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Bitcoin Futures Market Sees Surge in Open Interest! Is Confidence on the Rise? appeared first on Coin Engineer.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

Following its crash to $1,400 on April 9, ETH has now rebounded by nearly 30%, leading analysts to suggest that the worst may be behind for the world’s second-largest crypto asset.

Dominance Recovery And Technical Setup

Crypto analyst “Rekt Capital” highlighted that ETH market dominance had fallen to 7%, matching 2019 lows. However, by April 23, that share rebounded above 7.5%, signaling a bounce from a critical support level.

Markus Thielen of 10x Research stated that the market was heavily shorted, fueling a potential “short squeeze.” Technically, Ethereum was in an oversold zone on both daily and weekly timeframes, creating the perfect condition for a rebound.

An upcoming mainnet upgrade is also acting as a bullish catalyst, restoring confidence in Ethereum and signaling renewed strength in the crypto market.

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The post Ethereum Surges Back As Market Dominance Bounces From Critical Low appeared first on Coin Engineer.

On May 28th, Glassnode founder Yann Allemann analyzed Bitcoin’s on-chain data in a social media post. Looking at the data, the founder stated that the $72,000 level is still a strong resistance point and that if this level is exceeded upwards, a unique movement could be seen.

Emphasizing that the upward wave that will occur within this scenario could carry the price to a new all-time high (ATH), he pointed to $75,000.

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On the other hand, he reminded that the $72,000 level has been tested 3 times this week, but the sell wall is still strong.

He stated that if Bitcoin continues to consolidate between $64,000 and $72,000, it would open the door to altcoin rallies:

We are currently expecting Bitcoin to trade between $64,000 and $72,000, giving altcoins a chance to shine. The $72,000 to $74,000 range is marked by high supply and selling pressure. However, a sudden breach here could trigger a short squeeze and propel Bitcoin to unprecedented levels.

The post Glassnode Founder: Bitcoin Could See Unprecedented Move! appeared first on Coin Engineer.

The cryptocurrency market made a good start to the week with Bitcoin approaching $67,000 the previous day. According to CoinGecko data, the total market value of the market increased by approximately 0.5% today to $2.57 trillion.

Everyone was curious about which direction cryptocurrencies would take after Bitcoin’s halving over the weekend. The 10x Research team warned that the market could lose strength for a few months after the halving.

QCP Capital analysts yesterday drew attention to the fact that Bitcoin’s price has historically started to rise rapidly within 50-100 days after halving.

“If the same thing happens again this time, it means BTC bulls still have a few weeks to increase their long positions,” the analysts said.

Analysts, who said that funding rates in the market have also entered negative territory for some altcoins, commented as follows:

“In the short term, we may see a short squeeze led by altcoins and meme coins where funding rates remain negative. The increase in speculative perception can carry on leveraged longs (positions).”

The post Bitcoin May Still Have Time: Altcoins to Soar For This Reason! appeared first on Coin Engineer.