- Bitcoin’s (BTC) 66% rise in funding rate reflects the resolute stance of bullish investors keen on retaining their positions.
- Market analyst Alfred predicts a significant rise in Bitcoin mining activity, projecting an impressive, explosive upward movement in the next 8 days.
- Matrixport analysis also highlights historical trends, signifying a robust BTC rally during halving cycles.
The funding rate for Bitcoin (BTC) has surged to an impressive 66%, indicating that bullish investors are determined to hold onto their positions.
On January 1st, BTC rebounded and surpassed $45,000, paving the way for a new era. Additionally, the crypto community is eagerly anticipating the potential approval of a Bitcoin ETF by January 10.
Altcoins’ surge is an Indication of Significant Changes in the Crypto Industry
In a recent report by Matrixport, it is observed that the sustained high funding rate for BTC reflects the optimistic outlook of crypto traders, who are expecting the imminent approval of a Bitcoin ETF.
As Bitcoin’s dominance decreases to 50.3%, indications suggest that a wider altcoin rally is on the horizon, which will reshape the crypto industry.
Despite the lack of significant fiat-to-crypto inflows, as indicated by Tether minting, the ongoing price rally in the cryptocurrency market suggests an interesting market phenomenon.
Moreover, the funding rate has reached an all-time high of +66%, indicating a financial landscape where holding long positions yields an annual rate of 66% compared to shorts.
The interaction between the futures and spot market dynamics is expected to drive BTC’s price beyond $50,000 in January 2024. In fact, some speculators are even considering the possibility of surpassing this milestone by the end of the current week.
Potential Approval of a Bitcoin ETF Playing a Huge Role
According to renowned market analyst Mike Alfred, there is a strong indication of a significant increase in BTC mining activity, which he believes will lead to an explosive upward movement in the next eight days.
This prediction adds an interesting aspect to the ongoing discussions surrounding the potential approval of a BTC ETF. Instead of focusing on the ETF approval talks, attention is shifting toward the future, particularly the upcoming Bitcoin halving event in April 2024.
The surge in BTC miner activity plays a pivotal role in shaping expectations and speculations about the short-term trajectory of Bitcoin.
A recent report from Matrixport highlights that BTC mining companies are strategically limiting the supply of Bitcoin in anticipation of the halving cycles. This suggests that there may be a potential supply shortage and an unexpected surge in BTC prices.
However, the market, driven by scarcity and optimistic sentiment, is reshaping the narrative as Bitcoin continues to climb higher.
Matrixport: 2024, A Year to Watch Out for Unexpected Crypto Trajectory
Matrixport’s analysis of historical trends suggests that BTC could experience a significant rally during its halving cycles. This theory is supported by the impressive average returns of BTC in 2020, 2016, and 2012, which amounted to +192%.
Building on this observation, Matrixport speculates that BTC could reach its earlier projected target of $125,000 by July 2023 through the use of its ‘one-year-new-high’ indicator.
In addition to examining BTC’s trajectory, the report also draws interesting parallels between the performance of US stocks during election years and the potential shifts that could occur in the crypto landscape in 2024.
This highlights the possibility of significant changes and opportunities in the cryptocurrency industry in the coming years.
Despite expectations that the BTC rally would slow down, the cryptocurrency remains strong, comfortably trading above $45,719. In the final quarter of 2023, Bitcoin experienced an impressive surge of 56%, defying all expectations.
This surge was driven by speculations of potential approvals for spot-based BTC exchange-traded funds by the U.S. Securities and Exchange Commission. As a result, the new year begins with an air of suspense around Bitcoin’s future performance.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.