The funding rate of Bitcoin (BTC) indicates that the market is not too lively and there are no signs that the price of Bitcoin has peaked in the cycle, according to a cryptocurrency analyst.
'Analyzing the funding rate using the 30-day exponential moving average (EMA), there are clearly no signs of overheating at the end of the cycle', Avocado onchain, a collaborator of CryptoQuant, stated in the market report on December 17.
'This indicates that Bitcoin's upward trajectory is likely to continue, with significant room for further growth,' he added.
Bitcoin is likely to continue its upward trend, analysts say.
Anonymous analyst Rekt Capital wrote on the X platform on December 17 that 'Bitcoin has just begun the parabolic phase in this cycle.'
Rekt claims that this phase typically lasts 300 days, but it is currently only 'day 41'.
Bitcoin: Cash flow rate – Derivatives exchange | Source: CryptoQuant/Avocado
Data from CoinGlass shows that the funding rate of Bitcoin on Binance, the largest cryptocurrency exchange by trading volume, is at 0.0084%. This rate helps maintain fairness in trading by balancing prices between the Futures market and the spot market.
In a buyer-dominated market, buyers will have to pay fees to sellers (positive funding rate) to maintain their positions. Conversely, in a seller-dominated market, sellers must pay fees to buyers (negative funding rate).
In August, when Bitcoin's price fell below $60,000, the funding rate on Binance dropped to its lowest level of the year, indicating a significant change in market sentiment.
'Not too hot yet,' analysts say.
Anonymous analyst Mister Crypto wrote on the X platform on December 17 that the funding rate of Bitcoin 'is still not too hot'.
'The market will continue to rise as long as the funding rate has not reached 1%', he added. This assessment came after Bitcoin hit a new historical peak of $108,239 on December 17, according to data from CoinMarketCap.
Source: CoinMarketCap
Avocado also stated that the spot and Futures markets for Bitcoin have 'experienced a prolonged period of declining trading volume' from March to October, as the price of Bitcoin fluctuated between $53,000 and $72,000.
'However, since October, trading volumes in both markets have increased, driving the price increase of Bitcoin,' Avocado said.
Meanwhile, analysts at Bitfinex predict that Bitcoin price corrections in 2025 will only be short-lived thanks to strong demand from institutions.
Our view is that any correction in 2025 will only be mild, thanks to strong capital flows from institutions.
Bitfinex analysts cautiously predict that by mid-2025, Bitcoin could reach $145,000, and under 'favorable conditions', it could rise up to $200,000.
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