Crypto analyst Darkfost said on Oct. 16 that BTC funding on Binance has turned negative, with the rate at -0.0073%, a sign that short demand has strengthened in the Bitcoin derivatives market. He noted that a negative funding print usually points to a clearly bearish tone across derivatives positioning.
Darkfost added that Binance uses a 0.01% interest-rate parameter in its funding formula, meaning neutral funding is not 0% but 0.01%. In that framework, a drop below zero suggests bears have taken a clear advantage. He said the last time this happened was in June this year, when BTC was trading around $62,000.
The analyst tied the setup to weak macro data this week. Both U.S. CPI and PPI came in above expectations, lifting market expectations for future Federal Reserve rate hikes. At the same time, BTC has pulled back notably after breaking above $87,000 a few days ago. Darkfost also said that when bearish consensus becomes crowded, price can sometimes move the other way and even hint at a trend reversal, though the duration of any reversal has varied widely. For now, he identified $80,000 and $74,000 as two key levels to watch.
Crypto analyst Darkfost said on Oct. 16 that BTC funding on Binance has turned negative, with the rate now at -0.0073%.
According to Darkfost, negative funding usually signals stronger demand for short positions and points to a distinctly bearish tone across the broader derivatives market. He said the last time Binance funding showed this setup was in June this year, when BTC was trading at about $62,000.
Darkfost also noted that Binance applies a 0.01% interest-rate parameter in its funding-rate formula. That means neutral funding is not 0%, but 0.01%. With the current reading now below zero, he said the data shows bears have clearly regained the upper hand.
He said the signal deserves attention, especially after this week’s macro data came in weaker than expected for risk assets. U.S. CPI and PPI both topped forecasts, pushing up market expectations for future Federal Reserve rate hikes. BTC, meanwhile, has already seen a notable pullback after breaking above $87,000 a few days ago.
Darkfost added that, historically, when bearish expectations become highly one-sided, price has at times moved in the opposite direction and may even hint at a trend reversal. He also cautioned that the duration of any such reversal has varied significantly. Even so, he said traders should still build entry plans carefully and use key technical levels as reference points.
The two main price levels he flagged were $80,000 and $74,000.
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