Bitcoin price has surged this week from where it left off last week, setting consecutive all-time highs over the past seven days. Over the past few days, everyone has been wondering about the most crucial question – when will the most crucial cryptocurrency exceed the level of $100,000?
While most investors are concerned about the short-term goal, some market participants are more concerned about the long-term prospects of the world’s largest cryptocurrency. According to the latest on-chain data, it appears that Bitcoin may price sooner than expected.
Will rising bullish sentiment sustain the rally?
By market intelligence platform To the BlockBitcoin funding rates have seen a significant augment in recent days. The relevant indicator here is the “funding rate” indicator, which tracks the periodic fee exchanged between investors in the derivatives market (perpetual futures).
When the funding rate is high or positive, it means that long investors are paying tiny investors. Typically, this direction of periodic payments suggests powerful bullish sentiment in the market.
On the other hand, a negative value of the funding rate metric means that investors with tiny positions pay investors with buy positions in the derivatives market. This trend suggests that the market is bearish.
Data from IntoTheBlock shows that Bitcoin funding fees for perpetual swaps have increased by more than 10% – and by up to 20% on major trading platforms. However, the network company noted that this continued augment in the funding rate could indicate speculative overheating, potentially resulting in market corrections.
According to IntoTheBlock, one possible catalyst for this bullish sentiment is the US government’s approach to cryptocurrencies under Donald Trump. As “strategic Bitcoin reserves” become more likely under the modern US president, investors are banking on Bitcoin surpassing its six-figure valuation.
At the time of writing, the flagship cryptocurrency is valued at around $98,400, reflecting a 1% gain in the last 24 hours.
The Bitcoin Perpetual futures market remains capped – what does that mean?
In a recent post on the X Glassnode platform revealed that the perpetual Bitcoin futures market “remains subdued.” This suggests that several traders are still cautious about the market despite the steady rise in BTC prices in recent weeks.
Data from Glassnode shows that Bitcoin funding rates are just above 0.01%, which is lower than the level in March 2024 (~0.07%) when the BTC price reached a local peak. Ultimately, this suggests that there is still room for the most crucial cryptocurrency to grow in value.
