Bitcoin's derivatives market is showing signs of a slowdown as funding rates have dropped significantly, suggesting a decrease in leveraged long positions. This shift is happening alongside growing speculation that the government of Bhutan may be preparing to sell a portion of its substantial Bitcoin reserves.
According to Glassnode data, Bitcoin’s perpetual futures funding rates have fallen below 0.01%, indicating that traders are becoming less bullish and scaling back their speculative bets. While this reduces the risk of a "long squeeze," it also points to a more cautious market sentiment after a period of high-leverage trading.
The speculation surrounding Bhutan was triggered by a recent report from Arkham Intelligence, which noted a $59 million transfer of BTC from the government's wallet to a Binance-linked address. Although the country still holds over $1.2 billion in Bitcoin, the timing and destination of the transfer have led to concerns about a potential supply shock from a sovereign holder.
At the time of the report, Bitcoin was trading around $116,500, down 0.85% for the session. Technical indicators like the RSI and MACD suggest a potential short-term pullback, with resistance at $118,000 and support around $114,000. The current market environment reflects a mix of unwinding leveraged positions and caution driven by the unexpected moves from a major sovereign holder.
August 2025, Cryptoniteuae