The Bitcoin funding rate has entered negative territory for the first time since October 2023, according to data from CryptoQuant. This negative rate, which traders pay to initiate new long positions in the perpetual futures market, indicates a moderation in Bitcoin demand following a period of record demand for BTC in March.

March saw Bitcoin reach a new all-time high of $73,000. However, the cryptocurrency has since experienced a correction of nearly 13%, currently trading at $63,400 as per CoinMarketCap.

CryptoQuant highlights a recent decrease in net inflows into spot Bitcoin ETFs. The reduction in miner rewards resulting from the Bitcoin halving has contributed to a diminished desire among traders to open long positions.

Julio Moreno, Head of Research at CryptoQuant, notes, "It certainly means that the desire for traders to open long positions has eased." Additionally, waning buyer enthusiasm for BTC can be attributed partly to increased risk aversion amid tensions in the Middle East and anticipated delays in Federal Reserve rate cuts.

The decline in the funding rate coincides with a drop in daily inflows into U.S. spot Bitcoin ETFs. On April 24, the sector experienced a net daily capital outflow of $120.64 million. Only two crypto funds received an influx of capital: Fidelity Bitcoin Spot ETF (FBTC) with $5.61 million and the ARK Invest/21 Shares Bitcoin fund with $4.17 million.