Bitcoin Funding Rate Near Zero, Indicating Room for Growth
Bitcoin has gained nearly 9% in September, trading above $64,000. Experts predict continued growth due to a near-zero funding rate, indicating low leveraging in the market. Positive indicators suggest that both retail and institutional investors are maintaining their positions, further supporting a bullish outlook as we approach October, often referred to as “Uptober.”
Bitcoin has notably deviated from its historical trend of negative returns generally observed in September, culminating in a remarkable gain of nearly 9% for the month. As of the current reporting, Bitcoin’s price has surpassed $64,000, leading market experts to project improved conditions and sustained bullish momentum for the premier cryptocurrency.
Currently, Bitcoin’s funding rate has stabilized near zero, as reported by Matrixport. This situation implies that futures traders are not extensively positioning themselves on the long side of the market, despite Bitcoin’s ongoing price rally. Such a funding rate paves the way for potential long positions, further elevating prices. Additionally, this scenario indicates that the price rally may predominantly stem from strategic spot buying rather than excessive leveraging. Moreover, with Bitcoin’s supply in profit persisting at over 80%, the environment remains conducive for a bull cycle, marking a significant period for trading strategies as October approaches.
In summary, Bitcoin’s current trajectory displays encouraging indicators that suggest a bullish outlook. The funding rate’s return to near zero, coupled with heightened retail and whale support, suggests an opportunity for future price growth. Analysts express optimism about Bitcoin’s performance in October and foresee the potential for significant highs in the upcoming months, particularly as Q4 commences and market conditions evolve favorably.
Original Source: cryptopotato.com
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