Key takeaways:
Bitcoin’s rally to new price highs happened as funding rates and trading sentiment remained unusually subdued.
Rising stablecoin supply and global M2 growth indicate untapped liquidity and the potential for further price increases.
Long-term holders are not aggressively selling, reflecting their expectation for continued Bitcoin price appreciation.
Bitcoin (BTC) hit a new all-time high on May 21, with prices rising to $111,860 on Binance on May 22, but the markets lack the state of frenzy associated with new highs. Economist and crypto commentator Alex Krüger noted that “this is the least euphoric new all-time highs” for Bitcoin, after highlighting subdued funding rates for Bitcoin across crypto exchanges.
Bitcoin price and aggregated funding rate. Source: Coinalyze
The chart illustrates that the current BTC funding rate is significantly below previous market highs observed during March and November 2024. The funding rate was six times higher in Q1