Originally published on: December 18, 2024
According to a recent analysis, the Bitcoin funding rate is giving no indication of “late-cycle overheating,” suggesting that the cryptocurrency’s price has room to grow further. CryptoQuant contributor Avocado onchain stated in a markets report that the funding rate, when analyzed using a 30-day exponential moving average, shows a healthy market with no signs of peak pricing.
Meanwhile, pseudonymous crypto trader Rekt Capital believes that Bitcoin is just entering its parabolic phase, which typically lasts around 300 days. With only 41 days elapsed, there could still be significant upside potential for the cryptocurrency.
The current funding rate for Bitcoin stands at 0.0084% on Binance, indicating a relatively balanced market where buyers and sellers are on equal footing. In previous instances, such as when Bitcoin dropped below $60,000 in August, the funding rate experienced a significant shift, reflecting changes in market sentiment.
Despite hitting a new all-time high of $108,239 on Dec. 17, Bitcoin’s funding rates are still well within reasonable levels, according to traders. Mister Crypto mentioned that as long as the funding rates do not exceed 1%, there is potential for further price increases.
Looking ahead, analysts at Bitfinex predict that any price corrections in 2025 will be short-lived due to strong institutional demand. They conservatively estimate that Bitcoin could reach $145,000 by mid-2025 and potentially rise to $200,000 under favorable conditions.
It appears that Bitcoin’s current trajectory is positive, with increasing trading volumes driving upward price momentum. This suggests that there may still be room for growth in the cryptocurrency market.