Bitcoin Its price recently reached $58,000, creating great enthusiasm in the cryptocurrency market. This upward trend was driven by significant spot ETF volumes exceeding $3.2 billion and net inflows of $520 million. supported. But the real question is: Can this growth continue, or should we expect a correction towards the $50,000 level?
The latest increase is due not only to real demand, but also to the impact of short-term liquidations and a wave of speculative buying. This was manifested by rising funding rates on local exchanges and a significant increase in long-term transactions, which traded at a premium of up to 16% over spot prices.
As we reported as Koinfinans.com, the reaction to the rise in the options market was initially sluggish. However, there has been activity among call option holders, with significant profit taking and increased demand for downside protection. This activity concealed a figure in risk returns that hovered around 3%.
Volatility demand has increased as Bitcoin price has risen, but spikes have been met with selling pressure, suggesting the market is cautiously gearing towards overextension. Realized volatility is hovering around 40% and the market is targeting the $60,000 level towards the end of March.
Looking ahead, the sustainability of the rally is still questionable. While overheated funding rates could signal a potential correction, the uptrend could continue if the momentum of inflows into spot ETFs continues.
In this case, it is important to approach investment strategies carefully. Accumulators have proven to be a smart choice and have previously allowed customers to purchase Bitcoin at a 24% discount on the spot rate. Additionally, by using Unconditional Fixed Coupon Convertibles (UFCC), you can generate returns on long Bitcoin positions regardless of price fluctuations.
