Bitcoin (BTC) Price Drops as Funding Rates Turn Negative, But Experts See Potential for Recovery Due to Corporate Buyouts and Long-Term Holder Accumulation

Bitcoin's price has recently declined, but experts see potential for recovery due to corporate buying and long-term holder accumulation.

Bitcoin (BTC) price has recently dropped, but some experts say it could be setting up for a strong recovery.

According to crypto analyst Axel Adler Jr., corporate investors are quietly buying Bitcoin,

According to crypto analyst Axel Adler Jr., corporate investors are quietly buying Bitcoin, long-term holders are accumulating, and there’s no more selling pressure.

"The average funding rate on 4 major exchanges (Binance, ByBit, OKX, and Deribit) dropped into negative territory," Adler explained. "In this cycle, in 5 similar instances it ended with a price increase and once with a decline. Currently, the metric is just above zero."

Adler noted that the Bitcoin funding rate has dropped below zero on several major exchanges, according to Coinalyze data.

However, on other platforms like Huobi, Kraken, OKX, and Woo X, the funding rate has risen above zero.

A Pattern in Bitcoin's Market Cycles

Adler highlighted how similar funding rate patterns have appeared five times in previous Bitcoin cycles.

Four of those times, BTC saw a price surge, while once, the market declined.

Adler remains optimistic, highlighting that corporate investors are still buying, long-term holders are accumulating, and experienced traders have stopped selling. On-chain data also suggests that the market is stabilizing after a period of overheating.

"If the macroeconomic conditions remain weak, we might see a strong possibility of a 50% price increase from the current levels, potentially pushing Bitcoin to $130K," Adler added.

According to Adler, such a price move could be triggered by a shift in policy from the Federal Reserve or the Trump administration. He further explained that if Bitcoin attracts more institutional investment through ETFs, it could contribute to a significant price surge.