The crypto market has started the year 2023 with a remarkable bullish streak. In the past few days, several assets have posted significant gains and are beginning to weather the crypto winter.
In particular, Bitcoin, the market leader and the world’s largest digital asset, has been one of the top performing currencies this year. In the past seven days, BTC has gained more than 17%, allowing the coin to break above $20,000 for the first time since the start of the FTX crisis.
Bitcoin’s impressive price rally has generated a lot of excitement among the crypto community, along with a significant increase in positive sentiment across the crypto market. However, it seems that there could be a need for alert among investors in the coming days.
Bitcoin Posts Highest Funding Rates In Over A Year
According to a post by Maartun, a leading analyst at crypto-analytics platform Crypto Quant, Bitcoin funding rates have reached their highest values in 14 months. The Crypto Quant contributor further stated that the occurrence of high funding rates like these usually resulted in Bitcoin experiencing a price pullback.
Funding fees are recurring payments made to traders in a long or short position, depending on the difference between the perpetual contract markets and spot prices.
In essence, these payments serve as a method of keeping the price of perpetual contracts close to the spot price of an asset, in this case, Bitcoin.
That being said, when there are very positive funding rates on cryptocurrency exchanges, it indicates that traders are betting on the BTC/USD market for higher prices and are paying to last long in BTC.
Trading positions like these can be quite risky, as any slight drop in prices could lead to high levels of liquidation or force these traders to close their positions.
Therefore, these funding rates are definitely something that all BTC investors should be aware of in the coming days. For now, Bitcoin is holding its own, having gained 1.83% in the last 24 hours, according to data from CoinMarketCap.
At press time, the top cryptocurrency is trading at $20,722.66, with a market capitalization value of $399.23 billion.
BTC trade at $20,716 | Font: BTCUSD chart on Tradingview.com.
What to expect from Bitcoin in 2023?
According to the popular price prediction site, BitNation, Bitcoin could reach a maximum price of $37,307.77 before the years are up. His price forecast also states that BTC investors should expect an average price of $31,084.84.
However, the Tradingbeasts team predicts a fairly bearish Bitcoin market by 2023. Based on their price projections, BTC is expected to post slight losses throughout the year, closing its year-round market with a high of $18,339 and an average price of $18,339. of $14,671. .
So far, Bitcoin has shown a strong performance in 2023, gaining more than 25% since the beginning of the year. Without a doubt, the main cryptocurrency is an asset to watch in 2023.
Featured Image: Forbes, Tradingview.com Chart
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