This week has seen Bitcoin surge, picking up where it left off and hitting new all-time highs two weeks in a row. With this momentum, everyone’s wondering: is Bitcoin on its way to surpassing the $100,000 mark?
While some investors are focused on short-term goals, others are looking at the bigger picture and the long-term potential of Bitcoin, the world’s largest cryptocurrency. If you check out the latest data from the blockchain, there’s some buzz that Bitcoin might be in for a shake-up sooner than we think.
### Can the Bullish Momentum Keep Rolling?
The market intelligence folks over at IntoTheBlock have noticed a spike in Bitcoin funding rates lately. This “funding rate” is a critical metric—it’s essentially the fee traders in the derivatives market exchange with each other periodically.
When the funding rate is on the higher or positive side, it indicates that traders with long positions are paying those with short ones. Generally, this suggests that the market has a strong bullish outlook.
Conversely, if the funding rate dips into the negative, it tells us that those in short positions are paying the buyers, hinting at a prevalent bearish sentiment.
According to IntoTheBlock, Bitcoin funding fees for perpetual swaps have soared by over 10%, even reaching 20% on major trading platforms. However, they caution that this consistent uptick in funding rates might lead to overheated speculation, potentially sparking corrections in the market.
There’s speculation that this surge in bullish sentiment might be partly linked to how the U.S. government, under Donald Trump, is handling crypto. The idea that “strategic Bitcoin reserves” could be on the horizon with the incoming administration is making investors hopeful about Bitcoin breaking into six-digit territory.
Right now, Bitcoin is priced at about $98,400, marking a modest 1% rise over the past day.
### Navigating the Restrained Bitcoin Perpetual Futures Market
In a recent update on the X platform, analysis firm Glassnode pointed out that the Bitcoin perpetual futures market is showing a “restrained” behavior. This means many traders are still playing it safe, despite the recent uptick in BTC prices.
Glassnode’s data indicates that the Bitcoin funding rates hover just above 0.01%, which is noticeably lower than the roughly 0.07% mark seen back in March 2024 when BTC reached a local high. This implies there’s still potential for more growth in Bitcoin’s value.
These dynamics present an intriguing situation: while there’s a vibrant optimism propelling Bitcoin’s price, caution and restraint in futures trading suggest a market still grappling with its next moves. How it all unfolds will be fascinating to watch.
