Bitcoin just set a new all-time high just minutes ago as it has pushed past $37,000 for the first time ever. The cryptocurrency is now up 8.5% in the past 24 hours and is now up nearly 30% in the past seven days alone.
The cryptocurrency’s market capitalization is now nearly $700 billion, bringing it even closer to the market capitalization of gold.
Bitcoin has quickly dipped back under $37,000 as the cryptocurrency has encountered some selling pressure at those key levels.
The funding rates of leading Bitcoin futures markets are currently well into the positive at 0.1% per eight hours on Binance and lower but still relatively high on other platforms.
Many view this extremely high funding rate as a sign that there are many retail investors that are buying the cryptocurrency via futures, which could lead to a steeper correction if the upward buying action slows.
The funding rate is the recurring rate that long positions pay short positions on futures platforms to normalize the price of the future to the price of the underlying spot market.
Chart of BTC’s price action over the past few hours from TradingView.com. Bitcoin has just hit a new all-time high as per the chart, moving as high as $37,200 on leading exchanges.
Related Reading: Wall Street Veteran Kickstarts Own BTC Fund With $25m Investment
What’s Behind This Bitcoin Rally?
Behind the ongoing Bitcoin price rally is a surge in both retail and institutional interest.
Just recently, SkyBridge Capital revealed that it owns $300 million worth of BTC:
“SkyBridge Capital, a leading global alternative investment firm, today announced the launch of the SkyBridge Bitcoin Fund LP, which provides mass-affluent investors with an institutional-grade vehicle to gain exposure to Bitcoin. Additionally, on behalf of its flagship funds, SkyBridge initiated a position, valued at approximately $310 million at the time of this release, in funds investing in Bitcoin during November and December 2020.”
Retail investors are also flooding into the cryptocurrency market as well.
Source: Read Full Article