Bitcoin Bulls Call $125K Target as Funding Rates Crater to Three-Year Low

Bitcoin perpetual futures funding rates have plunged to their most negative levels since early 2023, according to CoinDesk-based data, signaling that shorts are paying premiums to stay positioned. That crowded-bear derivatives setup has some traders eyeing a contrarian short-squeeze rally: ZeroStack CEO Daniel Reis‑Faria forecasts Bitcoin could reach $125,000 within 30–60 days. The article frames the market impact as ambiguous — deeply negative funding traditionally precedes squeezes and rallies, but sustained negative funding could also reflect genuine downside pressure if spot demand remains weak. The immediate market catalyst will be whether spot buyers (institutions/whales) step in to absorb supply; a break above key resistance could trigger rapid covering and larger upside, while a failure would validate bearish positioning. Exchanges have not commented; the situation creates asymmetric risks and the potential for volatile price moves in either direction.