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Binance $1.5 Billion Liquidations and Negative Funding Rates Suggest Market Bottom
In the latest market development, Bitcoin (BTC) dropped significantly over the weekend, resulting in over $1.5 billion in liquidations on Binance, accompanied by negative funding rates signaling extreme bearish sentiment. The situation has led analysts to speculate that we may be approaching a market bottom.
The recent sell-off, fueled by macroeconomic concerns and ETF outflows, has triggered panic selling among retail investors, which is often seen as a precursor to a recovery in the crypto market. As reported, the asset dropped sharply to around $112,000 over the weekend, leading to massive liquidations on Binance, with negative funding rates indicating widespread short positions.
CryptoQuant analyst Amr Taha has pointed out that the third consecutive Friday sell-off witnessed BTC drop significantly, reaching about $112,000. This drastic decline pushed Binance’s cumulative net taker volume to its lowest point since July 25, suggesting a significant imbalance in market conditions. Taha noted that history often shows retail investors buying near tops and selling near bottoms.
It is important to note that the funding rates across major exchanges have turned negative recently, indicating an increase in short positions, which may signal a market bottom.
Source: cryptopotato.com
