Bitcoin rises toward its all-time high as futures markets show interest from bulls
Bitcoin is currently trading less than 5% below its all-time high of $109,500, with a balanced demand for leverage in perpetual contracts between buyers and sellers. The past few weeks have seen the 8-hour funding rate remain near zero, indicating a balanced market. The influence of retail investors has diminished with the introduction of spot Bitcoin ETFs and corporate adoption, leading institutional demand to surge significantly. CME’s $18.6 billion open interest in monthly BTC futures presents a regulated entry point for hedge funds and investment banks. Furthermore, the launch of spot ETFs has attracted various institutional investors, enhancing market liquidity. Between January 21 and January 27, market sentiment showed optimism, but some investor hesitation remains due to broader economic uncertainties, including political decisions and concerns over corporate revenue growth, particularly from the tech sector. Despite the lack of excessive bullish sentiment in the derivatives market, this reflects overall market caution rather than weakness.
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