Despite Bitcoin's 14% rise in April, marking its largest monthly increase since April 2025, a persistent negative funding rate in the BTC perpetual futures market suggests it reflects institutional investors' structural hedging strategies. According to CoinDesk, Markus Thielen, founder of 10x Research, explained, "The funding rate in the Bitcoin futures market is showing an unusual phenomenon. The 30-day annualized average funding rate is around -5%, a significant divergence from the previous high of +8%. Although Bitcoin's price is on an upward trend, the sustained 'negative funding rate' in the futures market indicates a structural change in the futures market, not merely a change in investor sentiment." He added, "The current market is driven by institutional investors' hedging activities, not retail investors. Hedge funds are short-selling futures as a hedge to manage their positions."
