Bitcoin funding rate hits 7% as BTC tests $65,500

On Monday the annualized funding rate for Bitcoin perpetual futures rose to 7%, the highest in nearly three weeks, as Bitcoin briefly reached $65,500. Trading venues showed increased demand for leveraged long positions.

US Vice President JD Vance commented that “the Strait of Hormuz remains open” and noted “encouraging progress” in talks with an Iranian delegation in Switzerland. Brent crude fell to about $77.50 a barrel, its lowest level since March.

Derivatives indicators diverged. The funding rate, inside a neutral 6%–12% range, reflected more traders paying to hold long positions. At the same time, demand for put options outpaced calls by more than two to one, a trend that began on Friday.

Equity and fixed-income moves ran counter to the funding-rate rise. The Nasdaq 100 fell about 1% as several AI-related stocks weakened. Shares of a SpaceX-listed company dropped roughly 13% after the company announced plans to raise debt while reporting more than $100 billion in cash. US Treasury yields rose and gold fell about 0.9% on Monday.

Order-book data showed bids on major exchanges exceeded offers by roughly $12 million on Monday, reversing a weekend trend of thinner buy interest. US-listed spot Bitcoin ETFs recorded net outflows for a sixth consecutive week, totaling about $228 million in the prior week.

Shares of Strategy (STRC US) traded around 13% below the $64.1 billion cost basis implied by reported holdings of 847,363 BTC. The firm carries about $6.75 billion in debt and announced it would bolster its cash position.

The funding-rate increase, lower crude prices, stronger order-book bids, persistent ETF outflows and protective options flows were all recorded on Monday.