The crypto market started 2023 with a spectacular bullish run. Many assets have seen significant gains over the last few days and are beginning to emerge from crypto winter.
Most notably, Bitcoin, the market leader and the world’s biggest digital asset, has been one of the top-performing coins this year. BTC has seen a 17% increase in value over the past seven days. This allowed the coin to reach $20,000 for the first-time since the FTX crisis.
Bitcoin’s impressive price rally has generated much excitement among the crypto community, along with a significant rise in the positive sentiment around the entire crypto market. It seems that investors will need to be more alert in the days ahead.
Bitcoin records highest funding rates in over a year
According to a post Maartun is a top crypto analyst on the platform. Crypto Quant, In just 14 months, Bitcoin funding rates reached their highest levels. Crypto Quant contributors stated that high funding rates are often accompanied by a price drop.
Funding rates refer to recurring payments made by traders to long-term or short-term positions. They are determined by the difference between spot and perpetual markets.
In essence, these payments serve as a method of maintaining the price of perpetual contracts close to the spot price of an asset – in this case, Bitcoin.
Despite this, high funding rates on crypto exchanges indicate that traders are placing their bets on the BTC/USD markets to achieve higher prices. They are also paying to take really long positions on BTC.
This type of trading can be risky because any price drop could result in high levels liquidation or force traders out of their positions.
This is why all BTC investors must keep an eye on these funding rates in the next days. Bitcoin is currently holding firm, with a gain of 1.83% over the last 24 hours according to data by CoinMarketCap.
The premier cryptocurrency trades at $20,722.66, and has a market capital value of $399.23 trillion as of press time.
Source 😐 Source: BTCUSD Chart on Tradingview.com.
What Can You Expect From Bitcoin in 2023
BitNation, a price prediction site that predicts Bitcoin’s future price, says Bitcoin could reach a peak value of $37.307.77 in the next few years. Their price forecast BTC investors can expect an average price in the region of $31,084.84.
Tradingbeasts predicts a bearish Bitcoin market in 2023, however. According to them, price projections, BTC is likely to experience some losses throughout the year. The BTC annual market closes with a maximum price $18,339, and an average price of 14,671.
Bitcoin has been a strong performer in 2023 so far, growing by more than 25% from the start of the year. It is clear that Bitcoin is the best cryptocurrency to be looking out for in 2023.
Featured Image: Forbes Chart, Tradingview.com