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The head of research at Galaxy said that, from a fundamental perspective, Bitcoin shows no signs of asset overheating.
Despite Bitcoin reaching a historic high this week, it shows no signs of 'overheating'; some analysts point out that fundamentals suggest Bitcoin may rise further.
Galaxy's head of research Alex Thorn stated in a market report seen by Cointelegraph on November 7: 'From a fundamental perspective, the market does not seem to be overheating.'
Analyst Aurelie Barthere from cryptocurrency analysis firm Nansen also expressed a similar view. In a market report on November 7, Barthere stated: 'Bitcoin broke its historical high with huge trading volume, clearly indicating that Bitcoin will continue to maintain positive momentum post-election.'
Barthere added that traders rushed to 're-risk' after Donald Trump won the U.S. presidential election on November 5, which is reflected in the recent upward trend in cryptocurrencies.
Bitcoin's price has surged, and financing rates 'remain largely unchanged.'
Thorn noted that despite future Bitcoin price movements
$75,809 in open interest (OI) — an indicator tracking the total number of unsettled Bitcoin derivatives contracts such as options and futures — 'has slightly increased to a new yearly high, with financing rates remaining largely unchanged.'
A significant increase in Bitcoin positions can sometimes lead to market participants worrying about increased Bitcoin volatility.
However, positive funding rates indicate that traders are optimistic about Bitcoin's price and that buyers are willing to pay certain fees to hold their positions.
Previously, Cointelegraph reported that on November 6, the Bitcoin OI reached $45.4 billion, an increase of 13.3% since November 5.
According to data from CoinGlass, as of the time of this writing, the Bitcoin funding rate on Binance, the world's largest cryptocurrency exchange, is 0.0100%.
Related: Analysts say Bitcoin price target is $120,000 as key indicators turn bullish.
Galaxy's Thorn expects that the trading prices of Bitcoin and other cryptocurrencies 'will be significantly higher than the current historical highs in the next 12-18 months.'
On November 7, Cointelegraph reported that from a technical analysis perspective, traders seem to expect Bitcoin to rise to a range of $78,000 to $85,000.
Traders say Bitcoin 'needs to continue' to rise.
According to data from TradingView, as of the time of publication, Bitcoin's trading price is $75,776.
Cryptocurrency trader Matthew Hyland stated in a post on X on November 7 that Bitcoin is 'consolidating' above its previous historical high of $73,679 and 'hopes to continue rising.'
Meanwhile, the Federal Reserve further cut interest rates by 25 basis points on November 7, an event that market participants had widely anticipated since the Fed's first rate cut in September.
Interest rate cuts are favorable for crypto assets, as traditional assets like bonds and fixed deposits reduce profits for investors.
