Crypto markets were hit hard and fast today, February 28, as news of U.S. and Israeli strikes on Iran hit the headlines. Among the more notable consequences were plummeting Bitcoin ( BTC ) funding rates, which sank more than 140% on the daily chart, as shown by real-time derivatives data on CryptoQuant FInbold retrieved at press time. The slide sent funding rates down to -0.0165, levels surpassed only once since May 2023, during early February jitters three weeks ago, when they sat at -0.2. BTC derivatives overview. Source: CryptoQuant At the same time, coin-margined open interest climbed to 676,000 BTC, signaling rising participation despite heightened volatility. In general terms, such a move underscored aggressive short positioning in the derivatives market. That is, short sellers are paying a premium to maintain bearish positions, reflecting aggressive downside bets and heightened fear in the market. Possible result of such a setup that could include either further downside if selling persists or trigger a sharp short squeeze should Bitcoin stabilize or rebound. Bitcoin struggles to rebound For now, Bitcoin is now attempting to reclaim the $65,000 level. The cryptocurrency dropped as much as 6% within minutes once news of strikes in Iran broke, wiping out an estimated $70 billion from the total crypto market cap in an hour and approaching the $63,000 mark. Leveraged positions saw heavy liquidations, with $100 million in long positions gone within 15 minutes. The sell-off was, of course, not isolated but reflected broader macro-driven pressure, underscoring the asset’s continued sensitivity to geopolitical shocks. Ethereum ( ETH ), for example, is still down 3% on the day as of the time of writing. From a technical standpoint, ‘digital gold’ is now trading below its key 7-day simple moving average ( SMA ) near $66,522. The relative strength index ( RSI ) sits at 38.49, suggesting the asset is approaching oversold territory, though not yet at extreme levels. In the near term, price action will likely hinge on geopolitical developments. A de-escalation in headlines could pave the way for a relief bounce, but a more substantial recovery will likely have to wait, with some candle patterns already hinting at when a rally above $100,000 could be possible. Featured image via Shutterstock The post Bitcoin funding rates nearly plummet to three-year lows as tensions in Iran escalate appeared first on Finbold .
