Bitcoin (BTC) Shows Potential for Further Gains Amid Low Funding Rates and Global Liquidity Expansion
Summary
- Bitcoin is expected to rise further due to still low funding rates and global liquidity expansion.
- The increase in global M2 money supply has a high correlation with Bitcoin prices, which could have a positive impact.
- With limited profit-taking, there is a possibility of additional buying pressure in the coming months.
Bitcoin (BTC) has reached a new all-time high, and analysis suggests that there is still potential for further gains due to low funding rates and global liquidity expansion.
On the 22nd (local time), cryptocurrency-focused media Cointelegraph reported, "BTC's futures funding rate is at one-sixth of the level compared to the first quarter of last year, indicating that it has not yet entered the euphoria stage." Compared to the fourth quarter of last year, the current funding rate is at one-third.
Additionally, due to changes in monetary policies of major countries such as the United States, the European Union (EU), and Japan, the global M2 money supply increased by 5% in the first quarter of this year. The correlation coefficient between Bitcoin prices and global M2 is over 80%, which is very high, and historically, Bitcoin has tended to follow this trend approximately 60 days later.
The media outlet predicted, "With limited profit-taking, there is a possibility of additional buying pressure in the coming months."
Meanwhile, BTC is trading at $111,387.17, up 2.10% from the previous day, based on the Binance Tether (USDT) market as of 01:25 on the 23rd.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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