Bitcoin ($123,665) has surged past the critical $120,000 resistance level, aiming for new all-time highs. While some traders have increased short positions, the setup could trigger a short squeeze that pushes prices even higher. Alongside Bitcoin’s rally, altcoins are showing steady gains with limited volatility.
In the derivatives market, open interest in Bitcoin futures reached a record $32 billion, reflecting strong optimism. The three-month annualized basis hovers near 8%, while divergent funding rates suggest mixed market sentiment. Deribit’s 25% funding rate, compared with more neutral levels on exchanges like Bybit, points to concentrated long positions. Options activity remains neutral overall, with a balanced put-call structure indicating a cautious yet stable outlook after weeks of bullish sentiment.
Altcoins are also benefiting from Bitcoin’s consolidation around $120,000. Ethereum ($4,574), Solana ($236), and XRP gained over 2%, while lesser-known tokens such as ETHFI and CAKE soared up to 25%. Meanwhile, some projects like MYX Finance and XPL face sharp declines, highlighting the market’s unpredictable nature. Analysts note that Bitcoin’s ability to hold current levels could further fuel altcoin growth as capital rotates into more speculative assets.
Market watchers emphasize that the evolving crypto landscape requires close attention to regulatory shifts, technological progress, and investor sentiment. With Bitcoin pushing toward uncharted territory, both BTC and altcoins present opportunities but also risks for investors navigating this dynamic environment.