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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 alternate 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 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 underneath eight hours.
This alerts a pointy pivot in sentiment, as merchants rushed to hedge or speculate on draw back threat in response to the unfolding information.
Darkfost emphasised that this was the most important intraday net taker volume reversal noticed on Binance this yr. The abrupt shift displays how rapidly 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 brief positions and significant selling pressure.
The scenario additionally led to a notable change in BTC perpetual futures funding charges. Funding on Binance turned damaging after briefly trending towards optimistic territory, dropping from +0.003 to under -0.004.
This means that brief sellers have been keen to pay a premium to keep up bearish positions, underscoring rising worry and doubtlessly overextended draw back bets.
When Funding charges turns damaging.
This sometimes alerts 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 damaging funding charges have been adopted by robust recoveries in Bitcoin’s worth. Darkfost noted three earlier occasions the place comparable 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 latest exception occurred in March 2025 following commerce tariff bulletins, which led to a continued decline.
Nonetheless, many merchants are watching carefully for signs of a short squeeze, the place worth rebounds drive brief sellers to cowl, amplifying upward momentum.
Featured picture created with DALL-E, Chart from TreadingView
