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Bitcoin Funding Rate Signals No Signs of'Late-Cycle Overheating' - Analyst
Bitcoin's funding rate shows no signs of market overheating, suggesting the current rally has more room to grow, according to CryptoQuant analyst Avocado onchain.
Stable Growth Indicators
Using a 30-day EMA, Avocado highlighted that Bitcoin's funding rates remain steady, supporting continued upward momentum. Crypto trader Rekt Capital echoed this, noting that Bitcoin is only 41 days into its parabolic phase, which typically lasts 300 days.
CoinGlass data shows Binance's funding rate at 0.0084%, far from overheated levels. Positive rates mean buyers are paying sellers to maintain positions, signaling a buyer-dominated market.
Historical Perspective
In August, when Bitcoin dropped below $60K, funding rates on Binance hit yearly lows, marking a bearish sentiment shift.
Since October, rising spot and futures trading volumes have fueled Bitcoin's climb, with prices recently peaking at $108,239.
Mister Crypto emphasized that funding rates are "not overheated at all" and projected further gains as long as rates stay below 1%.
Institutional Influence
Bitfinex analysts predict mild corrections in 2025, driven by strong institutional demand. They estimate Bitcoin could reach $145K by mid-2025, with a potential rise to $200K
under favorable conditions.
The steady funding rate and growing trading volumes suggest Bitcoin's price rally is far from over, with institutional support providing long-term stability.
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