The funding rate for perpetual bitcoin contracts has reached a multi-month high, indicating bullish sentiment in the short to medium term, according to The Block.
The metric, weighted by open interest, has reached 0.012%. The last time such a high level was observed was on July 27, when the price of the leading cryptocurrency rose to $68,000.
On October 14, $89 million worth of shorts were forcibly closed in the perpetual contracts market — the highest since August 5.
According to Bitget’s chief analyst Ryan Lee, traders are watching the $65,000 level after its breakthrough. If this mark holds as support, the upward momentum could continue, the expert noted.
Lee anticipates that by the end of the year, digital gold prices will range from $50,000 to $80,000, with the potential for more significant fluctuations in the first quarter of 2025.
“If key economic indicators remain favorable and bitcoin surpasses current resistance levels, we will see accelerated growth,” he clarified.
CryptoQuant pointed to an increase in open interest in derivatives to a record $19.8 billion.
#Bitcoin Open Interest Reaches New All-Time High of $19.8 Billion
“This upward trend in the derivatives market indicates a growing influx of liquidity and increased attention in the cryptocurrency space.” – By @EgyHashX
Full post ?https://t.co/l6CIyhO11o pic.twitter.com/HJxrxe2JP6
— CryptoQuant.com (@cryptoquant_com) October 15, 2024
Analysts noted that the rise in funding rates confirms bullish sentiment among traders and a growing influx of liquidity.
Earlier, CryptoQuant calculated that users with balances exceeding 1,000 BTC have accumulated an additional 1.5 million coins over the past six months.
Previously, Lekker Capital CEO Quinn Thompson urged investors to seize the opportunity to buy during dips.