Bitcoin funding rates stay negative as BTC price spikes to $43.5K

Bitcoin
(BTC)
surged
almost
$1,000
in
minutes
on
Jan.
12
as
encouraging
signs
emerged
from
exchanges.


BTC/USD
1-hour
candle
chart
(Bitstamp).
Source:
TradingView

Data
from

Cointelegraph
Markets
Pro

and

TradingView
 showed
BTC/USD
hitting
$43,468
Wednesday,
its
highest
since
Jan.
6.

The
pair
had
been
due
to
continue
volatile
moves,
traders
said,
with
more
and
more
favoring
a
push
higher
rather
than
a
renewed
downside.

This
would
likely
come
in
the
form
of
a
“short
squeeze”
against
latecomer
shorters,
they

argued
,
and
Wednesday’s
sudden
wick
higher
appeared
to
support
the
theory.

Funding
rates
across
derivatives
platforms

stayed

either
neutral
or
negative
during
the
volatility,
further
hinting
that
the
market
had
been
overly
betting
on
fresh
losses.


Bitcoin
funding
rates
chart.
Source:
Coinglass

Reacting,
popular
trader
and
analyst
Scott
Melker,
known
as
the
“Wolf
Of
All
Streets,”
reiterated
his
spot
price
targets
for
divesting
back
out
of
BTC.
A
reclaim
of
higher
levels
beyond
$50,000
would
then
form
a
pivot
for
a
market
entry,
he
told
Twitter
followers.

In
his
Tuesday
YouTube
update,
meanwhile,
Cointelegraph
contributor
Michaël
van
de
Poppe flagged $43,000
as
a
potential
springboard
for
a
trip
to
$46,000,
thanks
to
a
lack
of
resistance
in
between.

“I’ve
still
got
buy
orders
at
$38,000;
they
will
not
be
getting
hit,
but
I’ve
been
buying
heavily
here,”
he
said.

Meanwhile,
Wednesday’s
upcoming
United
States
consumer
price
index
(CPI)
data,
due
at
8:30
am
ET,
could provide
fresh
fuel
for
the
fire
 should
inflation
fall
outside
of
expectations.

Ether
among
major
altcoin
high
flyers

Following
on
from
Tuesday,
altcoins
capitalized
on
Bitcoin’s
newfound
strength.



Related: Bitcoin
exchange
outflows
see
biggest
daily
spike
since
September
2021

The
top
10
cryptocurrencies
by
market
capitalization
added
upward
of
4%
on
the
day,
led
by
Polkadot
(DOT),
Terra
(LUNA)
and
Ether
(ETH).

The
latter
was
up
over
5%
at
the
time
of
writing,
heading
firmly
away
from
$3,000
support. 


ETH/USD
1-hour
candle
chart
(Bitstamp).
Source:
TradingView

Previously,
warnings
had
come
for
altcoins
across
the
board,
with
tokens
yet
to

experience
“real
pain“
 during
the
current
drawdown.

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