Bitcoin traders chase short positions as Treasury yields weigh on gold

Bitcoin traders are paying to keep short positions open. Perpetual funding rates average minus 0.3% across major exchanges. The negative rate indicates short sellers are aggressively pursuing bearish positions and are willing to pay long traders to keep those bets open. Open interest stood at 652,000 BTC as of this writing, one of its lowest levels this year. It peaked at 800,000 early this year, according to Coinglass. The decline reflects traders staying away from leveraged plays despite Bitcoin's 40% price rise in the third quarter. Gold has dropped to around $4,150 an ounce as rising Treasury yields weigh on it. The dollar index is above 101.