Bitcoin Price Blasts Past $97,000 as Futures Hint at More Room to Run – Decrypt

Bitcoin continues to set new records this year as traders begin to focus on the six-digit price of the world's largest cryptocurrency, but an analysis of the asset's derivatives market shows that Bitcoin remains Not overheating.

The asset rose to well over $97,000 late Wednesday night, breaking its all-time high. $95,000 According to CoinGecko data, it takes less than an hour.

Its price movements have triggered a cascade of $100 million in liquidations in the past 24 hours, 80% of which were by short sellers or those who bet the price would fall, according to CoinGlass data.

Volatility has increased this year due to the listing of multiple spot ETFs in the US in January, options trading This week we will discuss those products.

The Republican victory in this year's U.S. presidential election has raised hopes of a changing of the guard, with favorable industry regulation and less oversight by the Securities and Exchange Commission, Wall Street's chief executive. are.

The trade, known as the “Trump trade,” has cryptocurrency and stock traders scrambling to accumulate assets ahead of the next president's inauguration on January 20, and is helping to boost overall sentiment in major markets. This is the cause.

Earlier this month, the Nasdaq Index rose to an all-time high of over 21,182 points, and the S&P 500 Index hit an all-time high of over 6,000 points for the first time.

This is being driven by post-election optimism, Federal Reserve interest rate cuts and strong corporate earnings, particularly in the tech sector. Advances in AI and supportive economic conditions further boosted investor sentiment, pushing the index to new highs.

Bitcoin is on track to outperform analysts' expectations for its price to exceed $100,000 in December, with Bernstein Research predicting the asset could double. $200,000 By the end of 2025.

“If you just look at the size and speed of the market, common sense would say investors are in a state of euphoria,” said Pav Hundal, principal analyst at Australian cryptocurrency exchange Swiftex. decryption.

“There are no signs of overheating in the futures market,” he said, adding: “Everything seems very rational and very intentional.”

The analyst noted that the funding rate for Bitcoin's perpetual contracts “currently stands at about 10%.”

“This is far from overheating,” he said. “It's certainly not like the 107% APR we saw long Bitcoin in March.” “We should have a pretty good idea in the next few hours whether this is the final push to $100,000.”