Bitcoin Funding Rate Falls to 6% as Price Tests $63,000 Amid Iran-Related Turmoil

Bitcoin fell to $63,000 on Feb. 28 following U.S. and Israeli strikes on Iran, while the perpetual futures funding rate declined to 6%, its second-lowest reading in nearly three months, CoinGlass data show. BTC-denominated open interest climbed from 6.68 million BTC to 6.87 million BTC in the past 24 hours, during which more than $500 million in crypto positions were liquidated, including over $420 million in longs. A deeply negative funding rate is typically associated with crowded short positioning, and rising BTC-margined open interest alongside such funding conditions is often interpreted as increased participation by market actors positioning for further downside. Bitcoin is now attempting to regain the $64,000 level, CoinDesk reports.