According to glassnode, the BTC funding rate has flipped negative, indicating a shift in trader sentiment with increased short positions building across major cryptocurrencies, including BNB and ADA. Notably, Solana now ranks as the 6th lowest funding rate among tracked assets on Glassnode Studio, signaling heightened short activity and potential downward price pressure. These developments are critical for traders monitoring perpetual swaps and funding rates, as negative rates often precede volatility or potential reversals. Source: glassnode (May 28, 2025).

According to Cas Abbé, nearly $2 billion in Bitcoin open interest has been wiped out over the past two days, signaling significant liquidations and volatility in BTC markets (source: @cas_abbe on Twitter, May 4, 2025). Despite this, the funding rate remains positive, indicating that late bullish traders are still attempting to buy the dip. This suggests that BTC could see further downside before the funding rate turns neutral or negative, a key indicator that typically marks a market bottom. Traders should be cautious as additional volatility is likely when the US market opens, with further downside risk if bullish sentiment persists without price support (source: @cas_abbe).