Bitcoin could go much higher due to lack of FOMO and futures market euphoria — Analysts

Bitcoin’s recent surge to record highs, reaching $111,860 on Binance, is notable for its lack of typical market frenzy. Funding rates remain unusually low across exchanges, significantly below peaks seen in previous market cycles. This subdued speculative activity suggests the rally is driven primarily by spot buyers, rather than leveraged traders, mitigating the risk of sharp corrections. The low funding rates indicate Bitcoin may not yet have reached a state of euphoria, despite the new all-time high.

Further supporting the potential for continued growth is the expanding supply of stablecoins. Stablecoin market capitalization, a key indicator of incoming capital, has increased substantially. Tether (USDT) and Circle’s USDC have both seen significant growth, suggesting a substantial pool of liquidity yet to be fully deployed into Bitcoin and other crypto assets. This influx of capital is further reinforced by global liquidity trends. The global M2 money supply, a measure of total money in circulation, grew by 5% in Q1 2025, driven by monetary policy adjustments across major economies. A strong correlation between Bitcoin’s price and global liquidity, typically with a 60-day lag, points to further buying pressure in the coming months.

Analysis of on-chain data reveals restrained profit-taking among Bitcoin holders despite the new highs. The total profit-taking volume was considerably lower than during previous price milestones. This muted profit-taking suggests long-term holders are confident in further price appreciation and are not rushing to sell. The combination of low funding rates, expanding stablecoin supply, increasing global liquidity, and restrained profit-taking paints a picture of a market far from overheated. This suggests the rally is sustainable and may have further room to run. The lack of widespread participation indicates that Bitcoin’s rally is not a crowded trade, leaving room for further capital inflow. However, it is crucial to remember that all investment decisions involve inherent risk, and thorough research is essential before making any trading decisions.