Bitcoin has hit a new all-time high as it climbed above $ 37,700 for the first time ever. This puts the market capitalization of the cryptocurrency at almost $ 700 billion. The Bitcoin price is currently being traded at $ 37,600 after a setback from the new all-time high.
The funding rates of the leading Bitcoin futures markets are currently in positive territory at 0.1% per eight hours on Binance. Many see this extremely high funding rate as a sign that there are many retail investors buying the cryptocurrency via futures, which could result in a steeper correction if the upward buying action subsides.
The Funding Rate is the recurring rate that long positions pay to short positions on futures platforms to normalize the price of the future to the price of the underlying spot market. But is a setback really to be expected?
What’s behind this bitcoin rally?
Behind the ongoing bitcoin price rally is a surge in interest from both individuals and institutions buying bitcoins. Just recently, SkyBridge Capital announced it owns $ 300 million in BTC:
“SkyBridge Capital, a leading global alternative investment firm, today announced the launch of the SkyBridge Bitcoin Fund LP, which provides high net worth investors with an institutional vehicle for exposure to Bitcoin. In addition, on behalf of its flagship funds, SkyBridge has initiated a position worth approximately $ 310 million as of this writing in funds that will invest in Bitcoin in November and December 2020. ”
The interest of private investors is also growing immensely, but it seems that there is still a lot of room for improvement compared to 2017. [Buy cryptocurrencies? To buy Bitcoin at eToro Instructions]
Bitcoin price target at $ 300,000
Prominent trader Peter Brandt posted a tweet today stressing that Bitcoin is now fully entering the parabolic phase. He says that although BTC is currently “overbought”, the cryptocurrency will continue to maintain this state. Bitcoin is well on its way to making new all-time highs.