As of late December 2025, the Bitcoin funding rate has climbed to its highest level since October 18, signaling a significant shift toward bullish sentiment in the perpetual futures market. This rise indicates that traders are willing to pay a higher premium to maintain long positions, reflecting increased demand for bullish exposure as Bitcoin attempts to recover from a multi-week consolidation phase.
Key details regarding this market activity include:
Retail Drive: Analysts attribute this uptick largely to short-term retail traders rebuilding leveraged positions following a massive $19 billion liquidation event in October.
Price Action: The surge in funding rates coincided with Bitcoin reclaiming the $90,000 level on December 29, 2025.
Open Interest Recovery: While open interest in Bitcoin futures has bounced from recent lows, it remains significantly below the peaks seen in early October 2025, when Bitcoin reached an all-time high of $126,251.
Annual Performance: Despite this late-year rally, Bitcoin is currently on track to end 2025 with an approximate 4% to 6% annual decline.
Institutional Activity: Major institutional moves continue to support long-term sentiment, such as Strategy (MicroStrategy) purchasing an additional 1,229 BTC for roughly $109 million in late December.
