Why Has Bitcoin Been in Negative Zone for 67 Days? What Does This Mean for the BTC Price? Analysis Company Explains

Bitcoin ($BTC) reached levels not seen since January in the new week. At this point, the $BTC price climbed above $82,000.

Despite seeing an increase in the $BTC price, it is experiencing its longest period of negative funding in a decade.

K33 Research President Vetle Lunde stated in her new report that the 30-day average funding rates have been negative for 67 consecutive days.

It was stated that this period of negative funding even surpassed the period between March 15 and May 16, 2020.

According to the analyst, the continued negative trend during the price recovery indicates that the market remained defensive.

Lunde also noted that prolonged periods of negative funding rates have historically coincided with market lows.

“Historically, prolonged periods of negative funding have generally occurred near market bottoms.”

This shows that situations like the current conditions tend to have a positive effect on $BTC.”

Lunde also argues that previous cycle data shows that buying Bitcoin during these periods of negative funding provides stronger and more consistent returns compared to random entry points.

According to Lunde, when viewed from a 30-day to 360-day perspective, the win rate for investors who bought Bitcoin during periods of negative 30-day funding rates ranged from 83% to 96%.

“This situation highlights that buying $BTC in environments like the current one has a much more favorable tendency in terms of upward movement compared to buying $BTC randomly.”

*This is not investment advice.