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.
Spinoff Metrics Reveal Bearish Sentiment Spike
In line 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 beneath eight hours.
This alerts 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 internet taker quantity 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 important promoting strain.
The scenario additionally led to a notable change in BTC perpetual futures funding charges. Funding on Binance turned adverse after briefly trending towards optimistic territory, dropping from +0.003 to beneath -0.004.
This means that quick sellers had been keen to pay a premium to keep up bearish positions, underscoring rising worry and probably overextended draw back bets.
When Funding charges turns adverse.
Shopping for or contemplating an extended place is usually sensible when funding charges flip extremely adverse, particularly if the worth begins to development upward.
This usually alerts a disbelief sentiment amongst merchants, creating sturdy contrarian… pic.twitter.com/LGyHU9uNNK— Darkfost (@Darkfost_Coc) June 6, 2025
Bitcoin Previous Patterns Recommend Potential for Reversal
Traditionally, deeply adverse funding charges have been adopted by sturdy recoveries in Bitcoin’s worth. Darkfost famous three earlier occasions the place comparable funding shifts led to massive 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 recommend that excessive pessimism can generally sign market turning factors. The one latest exception occurred in March 2025 following commerce tariff bulletins, which led to a continued decline.
Nonetheless, many merchants are watching intently for indicators of a brief squeeze, the place worth rebounds power quick sellers to cowl, amplifying upward momentum.
Featured picture created with DALL-E, Chart from TreadingView
