The Bitcoin 
$105,808 price is advancing towards historical peaks, with open positions surpassing $340 billion, indicating strong buying interest in the market. According to Matrixport, this latest upswing in the largest cryptocurrency is primarily driven by spot purchases rather than leveraged trades. A prominent uptrend backed by spot buying is evident.
Why is Bitcoin Rising?
A notable structural change is observed in the cryptocurrency market. Matrixport’s analysis dated May 21 identifies spot purchases as the main contributor to Bitcoin’s price surge, not futures trading. Despite open positions reaching record levels, funding rates are nearly zero, indicating a robust uptrend sustained by veritable investment demands rather than speculative leverage.
Low funding rates especially highlight that investors are making cautious purchases instead of engaging in high-risk positions. This prevents sudden and drastic corrections. Investors are largely executing high-volume transactions on the spot side, pushing prices up. In short, Bitcoin is rising, but this time, long-term investors take the stage.
Leverage Decreases, Investor Profile Changes
The low funding rates indicate that leverage ratios in the market are quite limited. This is regarded as an important signal for the sustainable rise of Bitcoin prices. Excessive purchases through leverage often lead to sudden declines, but currently, investors are steering clear of leverage, indicating that the market is moving more healthily.
Short-term speculators are being replaced by institutional and individual investors pursuing long-term investment strategies, minimizing market volatility. As per Matrixport’s analysis, the low volatility suggests that large price spikes or crashes are not expected in the short term. This transformation in the Bitcoin market can become permanent with growing institutional confidence.
The future price movements of Bitcoin will be shaped by the preferences of this new investor profile, adopting more patient and strategic investments instead of short-term trading.
