Bitcoin Soars to Pre-Slump Levels, Experts Predict Further Rally


In the world of cryptocurrency, Bitcoin is proving its resilience once more and exhibiting unprecedented stability, essentially recapturing the ground it lost since its historic value of over $70,000 back in March 2024. Noted experts in the field attribute this recuperation to the telling sign of dwindling funding rates.

Crucial to understanding this trend is the significance of the ‘funding rate’. Reliant on market determinations and liable to adjustment every eight hours, the funding rate is best described as the fee exchanged between those navigating the world of cryptocurrency trading. Oscillating between being positive or negative, based on market conditions, these funding rates ultimately dictate the momentum in the cryptocurrency market.

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When the pricing of perpetual cryptocurrencies soars higher than the spot price, the ‘bulls’ – a term coined to represent optimistic traders – owe a fee to the bears. This strategic dynamic discourages buyers from indulging in the perpetual market, in turn promoting buying into the spot, resulting in a reduction in price differences.

Interestingly, since the dawn of the new year, Bitcoin has flashed shades of green, representing a positive rally. This naturally impels those who are entering long trades to pay sellers to prevent extreme price disparities. Yet as instances of Fear of Missing Out (FOMO) starts to ebb, these rates witness a small decline at spot rates. However, if Bitcoin prices continue to trend upwards and surpass the peaks of March 2024, these funding rates will likely rebound to the levels seen in early 2024.

Meanwhile, Bitcoin is currently trading at an impressive $70,800 at spot rates and offers a bullish outlook. Observers note that buyers are working determinedly to redeem the losses incurred on April 8. To sustain this upward trajectory, prices need to scale new heights and surpass $72,500 and the previous high of April 8 on rising volume. The possibilities appear increasingly promising, with experts predicting Bitcoin could easily reach over $73,800 and embark on a path of price discovery.

As the FOMO gradually subsides and a sense of normalcy is reinstated, experts maintain that Bitcoin is primed for even higher reaches, boosted by the organic momentum fanned by market participants. Even though Bitcoin faced a slight dip on April 9, it quickly bounced back following encouraging news about the US Consumer Price Index (CPI).

Contrary to the effect of the robust CPI that dealt a blow to other assets, Bitcoin found a way to rally. Market watchers suggest the cryptocurrency stands to gain as wary traders, fearful of the inflationary trends, seek refuge in the ‘safe-haven’ Bitcoin can provide.

Furthering this optimistic forecast, experts anticipate a surge in demand for spot Bitcoin exchange-traded funds (ETFs) within the coming months. As established institutions increasingly buy shares of spot BTC ETFs, particularly those issued by powerhouses like Fidelity, there’s a growing consensus that the demand for the base cryptocurrency might catapult to fresh levels, thereby pumping prices.

Given these market trends, a school of thought among analysts is now robustly bullish, predicting a favourable scenario once the Bitcoin Trust (GBTC) halts offloading coins. However, as with all investments, these predictions should be accompanied by careful analysis and an understanding that market-surfing always carries risks.