Bitcoin's Perpetual Futures Funding Rate Hits Multi-Month High
According to data from Coinglass, Bitcoin’s open interest-weighted perpetual futures funding rate has reached a multi-month high, indicating that derivatives traders are adopting bullish positions.
Analysts anticipate that this positive funding trend will continue due to increased optimism in the crypto market following Donald Trump's recent U.S. election victory.
> "The high positive funding rate underscores bullish sentiment among investors eager to take on more leverage," stated Deribit CEO Luuk Strijers in an interview with The Block. He noted the significant outperformance of perpetual futures compared to spot markets, reflecting a surge in optimism within the crypto community post-election. Strijers emphasized that these metrics indicate both heightened enthusiasm and growing institutional participation in the crypto markets.
Outlier Ventures Research Lead Jasper De Maere also observed the surge in perpetual futures open interest, calling it a bullish confirmation and suggesting that positive funding rates could increase further.
De Maere pointed out that Bitcoin's positive funding rates currently exceed 0.04% on Bitmex and 0.03% on Binance, indicating that many highly leveraged positions have yet to be unwound. "While much of the highly leveraged positions have not been unwound, I think it's general bullish positioning, and it's normal during expected bull runs for synthetic exposure to increase," he added.
Additionally, The Block's Data Dashboard reports that the aggregated Bitcoin futures open interest across cryptocurrency exchanges has reached an all-time high, with total aggregated open interest exceeding $37 billion on 15 monitored crypto-derivatives exchanges.
A report by Copper.co predicts that Bitcoin could reach $100,000 by the time of the U.S. presidential inauguration on January 20, 2025. This forecast is based on recent trends in Bitcoin exchange-traded fund (ETF) accumulation, suggesting that ETFs may hold around 1.1 million Bitcoin by inauguration day.
Copper.co Head of Research Fadi Aboualfa mentioned, "We have back-tested the ETF accumulation trend against potential price ranges, suggesting a $100,000 Bitcoin is quite possible by the time the 47th U.S. President heads to the Capitol for inauguration on January 20." He highlighted that Trump's previous presidency witnessed Bitcoin reaching two all-time highs, although the current environment features a stronger dollar compared to the prior cycle.
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