VanEck Analyst: Bitcoin Shows Two Historical Bullish Signals: Declining Hashrate and Negative Funding Fees

CoinFeed reported on April 26th that VanEck analysts Matthew Sigel and Patrick Bush analyzed two historically bullish signals for Bitcoin: negative funding rates and a concentrated decline in hash rate, along with a cooling of volatility. With the easing of tensions between the US and Iran, Bitcoin's realized volatility fell from 56% to 41%, while the 7-day average funding rate turned negative to -1.8%, the lowest level since 2023. Historically, negative funding rates have typically foreshadowed strong future returns: since 2020, the 30-day average Bitcoin return during periods of negative funding rates has been +11.5%, while the overall return has been +4.5%, a hit rate of 77%.