Editor's PiCK
"Bitcoin Forms Support Near $100,000... Altcoin Volatility Expected to Increase"
Summary
- Bitcoin has surpassed $100,000, but it was reported that market volatility may increase due to overheated long positions.
- It was stated that market overheating is occurring due to bullish leverage demand, increasing the likelihood of adjustments in the cryptocurrency market.
- The funding rates for many coins have exceeded 100%, and it was reported that a 20-30% adjustment might occur.
Today, Bitcoin (BTC) reached an all-time high (ATH) with an incredible rally, but there are forecasts that market volatility may increase as the demand for long positions heats up the funding rates.
On the 5th (local time), cryptocurrency specialist media CoinDesk reported, "Bitcoin has surpassed $100,000 due to broad market demand, but the bullish leverage demand has caused market overheating, increasing the likelihood of adjustments in the cryptocurrency market."
This upward trend occurred after President-elect Donald Trump decided to appoint cryptocurrency supporter Paul Atkins as the Chairman of the Securities and Exchange Commission (SEC).
According to Velodata, after this rally, Bitcoin's annual funding rate soared to about 100%, and the funding rates for many coins such as Dogecoin (DOGE), Ripple (XRP), Crypto.com (CRO), and Monero (XMR) also exceeded 100%.
Felix Hartmann, founder of Hartmann Capital, stated, "The use of leverage has increased the funding rates, and even if a 20-30% adjustment occurs, it would not be surprising."
YM Lee
20min@bloomingbit.ioCrypto Chatterbox_ tlg@Bloomingbit_YMLEE
