Bitcoin’s Initial Negative Funding Rate in 2021 Points to Changing Market Sentiment: Will Bitcoin Reach $60,000 or $70,000 Next?

Bitcoin’s funding rate in the futures and derivatives market has declined, turning negative for the first time this year following the halving. Analysts anticipate limited upside in the short term, with the spot price expected to consolidate. Bitcoin’s funding rate has been decreasing throughout the year, and in the past week, it turned negative for the first time since October. Despite this, the cryptocurrency has managed to withstand the post-halving price dip and has gained 3.3% in the past week, currently trading at $63,593. However, investor interest in the derivatives market has been declining in recent weeks, and the funding rate has turned negative. This decrease in interest is reflected in the Bitcoin spot ETFs, which only brought in $9.8 million on Wednesday, with outflows from Grayscale reaching $130.4 million. BlackRock’s IBIT ETF also experienced its first day of zero inflows after a streak of 71 consecutive days. Analysts have mixed opinions on whether Bitcoin will experience a cyclical dump following the halving, as investors may shift their focus to altcoins. Some believe that Bitcoin will remain stable, citing its strong performance following previous halvings. Others, such as Standard Chartered, are bullish and predict that Bitcoin will reach $150,000.