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Bitcoin Rally Above $109,000 Fueled by Strong Fundamentals, Eyes New Peak

Bitcoin’s surge past the $109,000 level exhibits robust fundamental support from market indicators and macroeconomic trends, suggesting potential for new all-time highs.

Strong capital inflows into the market are highlighted by a roughly 10% increase in Bitcoin futures open interest alongside the significant price rise.

Current market dynamics, characterized by stable perpetual futures funding rates and a persistently positive Coinbase Premium Index, indicate this rally is primarily driven by sustained spot buying pressure rather than unsustainable leverage.

Technical analysis points to a potential breakout phase. Signs include a bullish MACD crossover and consistently low volatility readings, with prominent analysts identifying $137,000 as a plausible near-term target.

The upward pressure intensified recently as market movements triggered a significant short squeeze, liquidating over $196 million worth of Bitcoin short positions within just a 12-hour timeframe.

Providing a broader macroeconomic backdrop, the global money supply (M2) has expanded beyond $55 trillion. This expansive monetary policy environment continues to underpin Bitcoin’s perceived value proposition.

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