The Rise of Crypto Market Capitalization Above $3 Trillion
The crypto market capitalization has surged back above $3 trillion, showcasing the growing strength within the space. This surge comes as the Bitcoin price rises past $97,000, indicating a notable rise in bullish strength. Despite this increase, the token is expected to maintain a strong ascending trend and eventually reclaim $100K in the near future.
BTC Price Breakout and On-Chain Data Insights
The BTC price has consolidated for over a week before triggering a breakout above the range with capital influx and bullish sentiments reaching $100K. On-chain data reveals that whales and long-term holders are buying, leading to a drop in exchange reserves. This supply squeeze has pushed the price above the consolidated range. However, the price must rise above the ‘broken parabolic slope’ to potentially pave the way for a new all-time high, as suggested by crypto veteran Peter Brandt.
Peter Brandt’s historical chart of Bitcoin indicates a potential rise above the parabolic curve, triggering a strong bull run. Analysts predict a price range of $125,000 to $150,000 by August-September 2025, but caution against a possible 50% correction after reaching a new all-time high.
Understanding Open Interest and Bitcoin Funding Rate
Open interest plays a crucial role in determining investor sentiment. A rise in open interest suggests that long positions are outweighing short positions. However, despite the price nearing $100K, open interest remains negative.
According to data from Coinanalyze, the Bitcoin funding rate has turned negative, indicating that shorts are still dominant over longs. This bearish sentiment could potentially lead to a significant correction. Only the destruction of the USD may prevent this massive correction. As we monitor the next Bitcoin (BTC) price action, it will be interesting to see how the market evolves.