Bitcoin Rallies 37% With Stable Funding Rates, Long-Term Holders Unmoved

Bitcoin's recent rebound, which saw it rise from a potential cycle low of $74,508 on April 6 to slightly above $100,000, is marked by healthier price movements compared to previous rallies. Unlike last year's bull cycle, which was characterized by sharp spikes in Binance market buy volume and funding rates, the current rally is occurring without an overheated funding rate. This suggests a more cautious and sustainable market behavior, as earlier bull runs were marked by overheated funding rates and abrupt corrections, which weakened investor sentiment.

The current rally has maintained relatively stable funding rates, indicating that buying sentiment remains favorable for further upside. This is supported by the steady upward trend in market buy volume since 2023, suggesting that it’s not yet time to consider an exit. The analyst notes that while it’s difficult to predict exactly when Bitcoin will break its previous high, current on-chain and market data signals remain very constructive.

Other indicators also point toward a new all-time high for Bitcoin in the near future. On-chain data shows that long-term holders are not selling, even as BTC trades near its previous all-time high of $108,786, recorded in January. This behavior suggests that these investors anticipate further upside. However, analysts caution against overly optimistic expectations, noting that Bitcoin may still be far from experiencing a true supply shock. At the time of writing, BTC is trading at $102,393, down 1.4% in the past 24 hours.

In summary, the current Bitcoin rally is characterized by healthier price movements and more cautious market behavior, as indicated by stable funding rates and encouraging market buy volumes. While there are positive signs pointing toward a new all-time high, investors should remain cautious and not overly optimistic. The current on-chain and market data signals remain constructive, but it’s difficult to predict exactly when Bitcoin will break its previous high.