Use the code PRAGUE2024 to get a 10% discount for The Block’s exclusive crypto conference, Emergence.
Bitcoin derivatives traders are feeling quite optimistic. The funding rate for BTC perpetual futures has hit a multi-month high. Analysts point out that this indicates traders are gearing up for more gains.
Copper.co predicts that bitcoin could reach $100,000 by the time of the U.S. presidential inauguration in January 2025. This potential surge is driven by trends in ETF accumulation.
According to Coinglass, the open interest-weighted funding rate for bitcoin has risen significantly. This reflects a bullish attitude among traders. Many expect this positive trend to continue, especially after Donald Trump's recent election victory.
“The high funding rate shows that investors are eager to take on more leverage,” said Luuk Strijers, CEO of Deribit. He noted that perpetual futures are outpacing spot markets, signaling increased optimism in the crypto community.
Jasper De Maere, Research Lead at Outlier Ventures, observed that open interest in perpetual futures has surged. “This is a bullish signal, and the positive funding rates could climb even higher,” he added. Currently, the funding rates exceed 0.04% on Bitmex and 0.03% on Binance, indicating that many leveraged positions are still active.
“While some positions remain unwound, this reflects a general bullish outlook. It's normal for synthetic exposure to increase during expected bull runs,” De Maere explained.
The Block's Data Dashboard shows that the total open interest in bitcoin futures across exchanges has reached an all-time high, surpassing $37 billion across 15 monitored crypto-derivatives exchanges.
Copper.co's report suggests that bitcoin could hit $100,000 by January 20, 2025. This forecast is based on recent trends in ETF accumulation, which may lead to ETFs holding about 1.1 million bitcoins by inauguration day.
“We’ve tested the ETF accumulation trend against potential price ranges. A $100,000 bitcoin is definitely possible by the time the 47th U.S. President takes office,” said Fadi Aboualfa, Head of Research at Copper.co.
Aboualfa also noted that during Trump’s previous presidency, bitcoin reached two all-time highs. However, the current economic backdrop features a stronger dollar compared to the previous cycle.