US job growth in June has diminished hopes for a Fed rate cut, negatively impacting Bitcoin's price. Analysts anticipate the Fed maintaining stable interest rates, putting pressure on cryptocurrencies.
Bitcoin price rallied 80% the last time BTC funding rates flipped red. A large cluster of potential short liquidations near $111,320 could trigger a squeeze to accelerate Bitcoin's next leg higher into price discovery.
Bitcoin funding rates are declining, indicating increased caution and potential neutral or short-side positioning. Despite high futures activity, appetite for long exposure is fading, raising the possibility of a short squeeze, where short traders are forced to close their positions.
