Bitcoin Bull Run in action: Not a single crypto currency in the Top 100 sees losses today
After fears that Bitcoin could collapse over the weekend (which has happened), the crypto bull run seems to be back in full force as of Monday morning.
According to market data, there is literally no crypto asset in the top 100 by market by Bitcoin Era Reviews capitalisation that has fallen in the last 24 hours. Well, all except Stablecoins, but they don’t really count.
What the decrease in Stablecoins and the increase in Altcoins suggest is a strong flow of Fiat’s capital into Bitcoin, Ethereum and Altcoins.
Many believe that last week retail investors have finally returned to the crypto-currency area, leading to mass purchases of 2017-era coins.
The Altcoins that are benefiting most from the rally
Ethereum seems to be the main beneficiary of the ongoing rally.
The second-largest crypto currency has gained 10 per cent in the last 24 hours alone and has moved above $600 for the first time since mid-2018. ETH has gained around 20 percent in the last five days.
Ethereum seems to be benefiting from expectations that the ETH2 upgrade will be launched on time, as analysts have long assumed that this technological change will benefit the price of the coin.
But even smaller old coins have generated healthy returns for their owners. These include Horizen (ZEN), Nano (NANO), Waves (WAVES), VeChain (VET), Cardano (ADA) and Tezos (XTZ).
The interesting thing about the crypto currencies with this outperformance is that all of these coins are coins that had an extremely hard outperformance during the previous bull run, but have been underperforming DeFi since then.
DeFi coins are doing well today, although the performance of the listed old coins has surprised many investors.
Beware of a correction
However, as some analysts say, there is also a threat of a correction.
Mohit Sorout, founding partner of the crypto-fund Bitazu Capital, recently shared the chart below Sorout is the one who predicted close to $12,000 that the coin would explode towards an all-time high after its breakout.
He comments that in the last two days, the funding rates of the top markets for Bitcoin futures contracts have started to swing dramatically higher.
The funding rate is the recurring fee that long positions pay for short positions in order to keep the price of a futures close to the spot market price. Extremely high funding rates mean that there are long positions that take advantage of short positions with leverage – and vice versa.
Bitcoin’s funding rates on leading margin exchanges such as ByBit and FTX are reaching highs not seen since the summer peak of $12,500. In some cases, funding rates are higher than those seen in the summer.
Sorout believes that this is a sign that Bitcoin’s short-term upside potential is likely to be limited.