After the minor pullback on Monday, the Bitcoin bulls have charged back today as BTC hit a new all-time high price slightly above $50,000 levels at 4:16 a.m. UTC on the Binance exchange. The biggest question right now is whether BTC will surge above the $50,000 resistance and become a trillion-dollar asset very soon. Some of the on-chain indicators suggest that Bitcoin is likely to surge going further.
According to CryptoQuant, the stablecoin reserves for all-exchanges have also touched an all-time high. The CEO of CryptoQuant, Ki-Young Ju, adds that this could be the right time for long-term investors to buy BTC.
“Not sure how many corrections would be along the way, but the on-chain indicator says there are enough stablecoins in exchanges compared to Bitcoins to get another leg up.”
Meanwhile, the ‘Elon Candle’ represents the biggest ever BTC price surge candle in history, after Tesla’s BTC purchase. It is also responsible for the recent Bitcoin trend as institutional investors, mainly hedge funds, have recently started investing in cryptocurrencies.
The Bitcoin Derivatives Market Is Booming
According to Glassnode, a popular on-chain data provider, the BTC derivatives market has turned explosive. The Futures open interest has touched a record-high of $16.48 billion, nearly 4x the previous peak of $3.48 billion. Elon Musk’s entry into Bitcoin seems to have resulted in a massive $438 million liquidation of shorts.
Glassnode also states that the miner selling pressure has reduced during this week.
“This suggests that miners have either completed adequate sales to cover costs, or could also mean they see Tesla’s vote of confidence as a fair reason to keep a strong grip on their treasuries.”
On the other hand, the Bitcoin funding rates have also touched new highs. This suggests that the futures market is extremely overrated at this point. However, despite the high funding rates, Glassnode adds that the spot demand can back the leverage. Thus, the ‘futures to spot volume ratio’ for BTC looks healthy in comparison.
We all know how Tesla’s $1.5 billion Bitcoin purchase has sparked massive corporate interest in Bitcoin. Over the last week, top companies like Uber and Twitter have shown interest in Bitcoin, either through offering payment services or adding it to their balance sheets. Even banking giants like JPMorgan, BNY Mellon, and Morgan Stanley have shown interest in Bitcoin.