Bullish Bitcoin Soars to $125K As Funding Rates Go Extremely Negative
Bitcoin bulls have gone on the rampage with funding rates turning extremely negative as Bitcoin prepares for a major rebound.
Key Data Points
* Price: BTC/USD around $74,700, gaining 3.5% week-over-week and down 0.4% day-over-day.
* Funding Rate: 7-day MA slumped to roughly -0.005%, which was last seen when BTC bottomed out due to the FTX collapse in late 2022. Negative funding rates indicate shorts are paying longs.
* Target: ZeroStack CEO Daniel Reis-Faria says BTC can hit $125,000 within 30-60 days if shorts cover their positions.
Why Funding Rates Are Important:
Funding rates balance perpetual futures with spot markets. The extremely negative funding rates indicate there are massive shorts in the market. In history, extreme negative funding rates have been associated with local bottoming events in March 2020, mid-2021, late 2022, August 2024, and April 2025.
Potential Problem: Underwater Holdings
Holders who purchased within the range of $75,000-$95,000 in 2025 are all underwater. A move to those figures could prompt a sell-off by the “wall of worrying holders” hoping to break even. Getting up to $125K entails buying the supply without capitulation.
Coming Catalysts
* April 22: Deadline for Iran ceasefire. An extension removes geopolitics; a failure sees
$BTC fall to the $68,000 level.
* April 28-29: FOMC meeting. Positive talk by Powell could see an increase in
$BTC .
* Early May: Possible committee meeting for the passing of the CLARITY Act.
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