Bitcoin sets up potential short squeeze as funding plunges to -6%

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Bitcoin's funding rates have dropped to -6%, signaling a potential short squeeze scenario as negative rates incentivize short sellers to cover positions. Rising open interest and liquidations indicate increased derivatives trading and crowded short positions. This dynamic could drive upward price pressure if short sellers rush to unwind their bets. The situation highlights growing speculative activity in crypto markets, which may attract more institutional participation.