Analyst: Expectations of interest rate hikes intensify, bears regain dominance in the Bitcoin derivatives market.

BlockBeats news, October 16: Crypto analyst Darkfost posted that Binance's BTC funding rate has turned negative, currently at -0.0073%. A negative funding rate typically indicates strong short-selling demand in the market, with overall sentiment in the derivatives market clearly bearish. The last time this occurred was in June this year, when BTC price was around $62,000. It should be noted that Binance's funding rate formula uses a 0.01% interest rate parameter, so a neutral funding rate is not 0%, but 0.01%. The current funding rate falling below zero means that bearish forces have clearly gained the upper hand.

This signal is worth watching, especially against the backdrop of poor macroeconomic data this week, with US CPI and PPI both coming in above expectations, further boosting market expectations for future Fed rate hikes. Meanwhile, BTC has seen a notable pullback after breaking above $87,000 a few days ago. Historically, when the market forms a highly consensus bearish expectation, price action sometimes moves in the opposite direction instead, and may signal a trend reversal, though the duration of the reversal varies greatly. Although this signal has reference value, traders still need to carefully formulate entry strategies in conjunction with key technical levels. Two important price levels worth watching at present are $80,000 and $74,000.