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Author: Admin | 2025-04-28
Bitcoin's surge above $90,000 has left investors wondering if it still has room to run. In case you missed it, Bitcoin (BTC -7.24%) has been on an absolute tear. Following the recent U.S. election that saw pro-crypto candidate Donald Trump win the presidency, Bitcoin has surged over 30% since election night, recently surpassing $90,000.The cryptocurrency's performance has undoubtedly caught the attention of seasoned investors and newcomers alike. But with Bitcoin at such highs, it's only natural to ask: Is it still a good buy today?Conventional wisdom says that buying at all-time highs is risky business. But there are two compelling reasons -- one short-term and one long-term -- that suggest Bitcoin could still be a strong buy.Image source: Getty Images.Bitcoin's short-term potential is still thereAt first glance, Bitcoin's climb to $90,000 might suggest that the rally has ended, leaving latecomers feeling they've missed out. However, this isn't the case.An often-overlooked indicator, funding rates for Bitcoin perpetual futures, tells a different story. This may seem like a technical detail, but understanding funding rates can help investors gauge the sustainability of Bitcoin's current rally.Funding rates are periodic fees exchanged between traders holding long (buy) and short (sell) positions in futures markets. Their purpose is to keep the futures contract price close to Bitcoin's actual spot price.When the funding rate is positive, long positions pay a fee to short positions, indicating a higher demand to bet on price increases. Conversely, a negative rate means short positions pay longs, suggesting bearish sentiment dominates.Elevated funding rates typically indicate a highly leveraged market, where many traders are taking out long positions with borrowed funds. Historically, Bitcoin's price has seen local peaks when funding rates surge, as these leveraged positions become susceptible to liquidations during any price correction.$BTC futures funding rates are the lowest we've ever seen during a break of the previous all time high. This is going to get insane. pic.twitter.com/Fa4NX1z4PW-- Dylan LeClair ๐ (@DylanLeClair_) Nov. 11, 2024However, as you can see in the chart above, this isn't the case today. Data shows that even with Bitcoin reaching $90,000, funding rates remain low, suggesting that
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