According to Charles Edwards (@caprioleio), Bitcoin tends to overreact to news, both positively and negatively. He notes that market positioning became excessively short following today's Executive Order (EO) announcement, indicating a potential overreaction by traders.

According to glassnode, funding rates confirm a shift in the market dynamics. Bitcoin (BTC) and Ethereum (ETH) maintain slightly positive funding rates, indicating a continued bullish sentiment. However, Solana (SOL) has seen its funding rate turn negative, suggesting increased short interest and potential bearish sentiment. Additionally, negative funding rates in memecoins indicate dominant short positioning, hinting at an unwinding of excessive leverage in these riskier assets.