Unlocking Bitcoin’s (BTC) Potential: Key Factors to Reach the $65,000 Milestone

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Bitcoin’s price has surged by over 6% in the last 24 hours, sparking a flurry of trading activity in its derivatives market.
If the bullish momentum continues, Bitcoin could potentially rally past the $65,000 price level.
However, a few key factors need to pan out for this bullish projection to materialize.

Bitcoin’s recent price surge has sparked a flurry of trading activity, with the potential to rally past $65,000 if the bullish momentum continues. However, a few key factors need to pan out for this bullish projection to materialize.

Bitcoin’s Price Surge and Its Implications

Bitcoin’s price has risen by over 6% in the last 24 hours, leading to a notable change in its funding rate from negative to positive on Binance. Funding rates are a mechanism used in perpetual futures contracts to ensure that the contract price stays close to the spot price. When an asset’s contract price is higher than its spot price, traders who hold long positions pay a fee to traders shorting the asset. Conversely, negative funding rates are recorded when the asset’s contract price is lower than the spot price. In this case, short traders pay a fee to traders holding long positions.

What Does This Mean for Bitcoin’s Price?

A sudden shift from negative to positive funding rates suggests a strong demand for long positions, which is considered a bullish signal and a precursor to an asset’s continued price growth. Bitcoin’s funding rate on Binance closed on 3 May at a year-to-date low of -0.008%. However, after the price initiated an uptrend to climb by over 6% in 24 hours, its funding rate on the leading exchange changed to positive. This indicates that there were ... Read the full article for FREE at COINOTAG!