Bitcoin (BTC) dropped sharply over the previous 24 hours, nearing the $100,000 mark with an intraday low of $100,984. This worth motion displays elevated volatility throughout the crypto market following a public change on social media between US President Donald Trump and Tesla CEO Elon Musk.
Their conflict seems to have triggered a wave of risk-off sentiment amongst merchants. In response, the worldwide crypto market cap slipped 4%, falling from over $3.4 trillion yesterday to $3.33 trillion. In the meantime, the broader market correction has not gone unnoticed in derivatives information.
By-product Metrics Reveal Bearish Sentiment Spike
In keeping with CryptoQuant analyst Darkfost, the Binance internet taker quantity, a metric that measures the distinction between aggressive longs and shorts, fell dramatically from $20 million to -$135 million in below eight hours.
This indicators a pointy pivot in sentiment, as merchants rushed to hedge or speculate on draw back danger in response to the unfolding information.
Darkfost emphasised that this was the most important intraday net taker volume reversal noticed on Binance this 12 months. The abrupt shift displays how shortly sentiment can change when macro-level narratives or influential figures dominate headlines.
On this case, the market responded swiftly to perceived uncertainty, resulting in a focus of quick positions and significant selling pressure.
The state of affairs additionally led to a notable change in BTC perpetual futures funding charges. Funding on Binance turned unfavorable after briefly trending towards constructive territory, dropping from +0.003 to beneath -0.004.
This means that quick sellers had been prepared to pay a premium to take care of bearish positions, underscoring rising concern and probably overextended draw back bets.
When Funding charges turns unfavorable.
Shopping for or contemplating a protracted place is usually sensible when funding charges flip extremely unfavorable, particularly if the worth begins to development upward.
This sometimes indicators a disbelief sentiment amongst merchants, creating robust contrarian… pic.twitter.com/LGyHU9uNNK— Darkfost (@Darkfost_Coc) June 6, 2025
Bitcoin Previous Patterns Recommend Potential for Reversal
Traditionally, deeply unfavorable funding charges have been adopted by robust recoveries in Bitcoin’s worth. Darkfost noted three earlier occasions the place related funding shifts led to giant rallies: October 2023 (BTC surged from $28,000 to $73,000), September 2024 (from $57,000 to $108,000), and Might 2025 (from $97,000 to $111,000).
Whereas not assured, these patterns counsel that excessive pessimism can generally sign market turning factors. The one current exception occurred in March 2025 following commerce tariff bulletins, which led to a continued decline.
Nonetheless, many merchants are watching intently for signs of a short squeeze, the place worth rebounds power quick sellers to cowl, amplifying upward momentum.
Featured picture created with DALL-E, Chart from TreadingView
