As a seasoned cryptocurrency investor with over a decade of experience in this wild and unpredictable market, I must say that the recent surge in Bitcoin’s price to new all-time highs has me both excited and cautiously optimistic. The fundamental indicators presented by analysts like Alex Thorn and Aurelie Barthere suggest that there is still room for growth, but I’ve learned the hard way not to take anything for granted in this space.
Regardless of hitting fresh record highs this week, Bitcoin doesn’t appear to be showing any indications of being overly heated, according to some analysts. They believe that the underlying foundations of Bitcoin may still allow it to rise even more.
According to Galaxy Head of Research Alex Thorn, the market appears balanced from a foundational viewpoint, as expressed in his November 7 market report.
Analyst Aurelie Barthere from the cryptocurrency analysis firm Nansen shared a comparable viewpoint. “The surge past its record high by Bitcoin, accompanied by high trading activity, is a strong indication of persistent positive trends following the elections,” Barthere stated in her Nov. 7 market report.
After Donald Trump’s win as the U.S. President on November 8, traders have been eagerly resuming risky investments, as indicated by the recent surge in cryptocurrency values.
Bitcoin’s funding rate ‘mostly unchanged’ amid price surge
Thorn noted that although the Future Bitcoin Open Interest has risen slightly to reach new annual peaks, funding rates have remained relatively stable.
Large volumes of Bitcoin Open Interest (OI) may occasionally lead to concerns among market players regarding potential increases in Bitcoin’s price fluctuations.
From my perspective as an analyst, a favorable funding rate implies that Bitcoin traders are confident about the cryptocurrency’s price increase. This confidence translates into buyers being prepared to compensate sellers for maintaining their positions.
According to CryptoMoon’s latest report, the Open Interest (OI) for Bitcoin increased by 13.3% from November 5 to November 6, reaching an impressive $45.4 billion on the latter date.
Currently, when it comes to Binance – the biggest cryptocurrency exchange globally – the funding rate for Bitcoin is set at 0.0100% as per the information provided by CoinGlass.
According to Galaxy’s Thorn, it is anticipated that the values of Bitcoin and other digital currencies will be noticeably higher than their current record highs within the next 12 to 18 months.
According to a report by CryptoMoon on November 7th, based on their technical analysis, it seems that traders are expecting Bitcoin’s price to potentially surge within the range of $78,000 to $85,000.
Bitcoin ‘wants continuation,’ says trader
At the time of publication, Bitcoin is trading at $75,776, according to TradingView data.
According to crypto trader Matthew Hyland, expressed in a recent post on November 7, Bitcoin is currently holding steady above its prior record high of $73,679, indicating it’s poised for further growth.
On November 7th, the U.S. Federal Reserve chose to reduce interest rates by 0.25 percentage points, a move that many market participants had been expecting since the Fed initiated rate reductions in September.
Reducing interest rates makes cryptocurrencies more appealing because conventional investments like bonds and savings accounts offer smaller returns.
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2024-11-08 09:09