Crypto Derivatives Funding Rates Shift to Net Short Amid War Risks and Clarity Act Stall

Funding rates across major crypto exchanges have turned decisively negative, with traders holding net short positions as concerns mount over potential war escalation and the stalled Clarity Act. Historically, periods of heavy shorting have increased the likelihood of price rebounds, as short liquidations can drive markets higher when resistance levels break. Market participants are advised to track aggregated Bitcoin and Ethereum funding rates across exchanges, which may signal positioning trends not visible in spot prices.