Despite Bitcoin's 14% surge in April, marking its largest monthly gain since April 2025, a continuous 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 persistent 'negative funding rate' in the futures market indicates a structural change in the futures market, not just a simple shift in investor sentiment." He added, "The current market is driven by institutional investors' hedging activities, not individual investors. Hedge funds are shorting futures as a hedge to manage their positions."
