Bitcoin has reached a new all-time high as it rose above $37,700 for the first time ever. This brings the cryptocurrency’s market capitalization to almost $700 billion. Currently, the Bitcoin price is trading at $37,600 after a setback from the newly set all-time high.
The funding rates of the leading bitcoin futures markets are currently in positive territory at 0.1% per eight hours on Binance. Many see this extremely high funding rate as a sign that there are many retail investors buying the cryptocurrency via futures, which could lead to a steeper correction if the buying action eases to the upside.
The funding rate is the recurring rate that long positions pay to short positions on futures platforms to normalize the price of the futures to the price of the underlying spot market. But is a reset really to be expected?
What’s behind this bitcoin rally?
Behind the ongoing Bitcoin price rally is a surge of interest from both individuals and institutions buying Bitcoins. Just recently, Crowd Millionaire announced that they own $300 million worth of BTC:
„SkyBridge Capital, a leading global alternative investment firm, today announced the launch of SkyBridge Bitcoin Fund LP, which provides mass affluent investors with an institutional vehicle for exposure to Bitcoin. In addition, SkyBridge has initiated a position on behalf of its flagship funds worth approximately $310 million as of the date of this release in funds investing in Bitcoin in November and December 2020.“
Interest from retail investors is also increasing immensely, but it appears that there is still a lot of room for improvement compared to 2017. [Buy Cryptocurrencies? Go to Buy Bitcoin at eToro Guide]
Bitcoin price target at $300,000
Prominent trader Peter Brandt has published a tweet today emphasizing that Bitcoin is now fully entering the parabolic phase. In doing so, he says that while BTC is currently „overbought“, the cryptocurrency will continue to hold this condition. Bitcoin is on track to reach new all-time highs.
If his chart is to be believed, Bitcoin could rise towards $300,000. But he is not the only one who is bullish on Bitcoin.
PlanB, who has been predicting for years that Bitcoin could break $100,000 by the end of 2021 and even reach $288,000 this cycle, posted the following chart yesterday: