Bitcoin drops 17% in 3 days, with $1 billion long positions liquidated, yet funding rates remain positive — this is not a typical panic sell-off.

Data from Coinglass shows that mainstream platforms' BTC and ETH funding rates have not turned negative, indicating that leveraged longs have not massively capitulated.
This contrasts with the pessimistic sentiment at the February lows: at that time, prices were similar, but funding rates were deeply negative.
The market views this recent decline as a “correction” rather than a “crash,” driven by structural shifts in capital: liquidity is being pulled by AI stocks and IPOs, not an internal crypto collapse.
Abraxas Capital reduced its holdings by 2,469 BTC, while 7Siblings borrowed 10 million USDT to buy the dip in ETH — whale behaviors are diverging.
The risk is: if funding rates stay positive while prices continue to fall, it could lead to increased leveraged liquidations.
Mining shutdowns have already impacted prices, and the stablecoin APXUSD has de-pegged to $0.94, with on-chain liquidation pressure still present.
This is not simply a “buy the dip” or “sell the top” scenario, but a phase of capital rebalancing.
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