Bitcoin has recaptured the $110,000 level for the second day in a row.
Over the last 24 hours, Bitcoin was just above $110,000 just after the stock market closed on Tuesday, up 0.9%, at 1%. Coindesk 20 – The index of the top 20 cryptocurrencies by market capitalization, excluding Stablecoins, Exchange Coins and Memecoin, rose 3.3% over the same period.
ETH$2,772.06
Solana
Sol$165.33
ChainLink
link$15.26
Everything earns 5%-7%.
However, the outstanding performance was done by Uniswap
Uni$8.34
And aave
Ghost$306.78
soaring to 24% and 13%, respectively. The move was prompted by Securities and Exchange Commission (SEC) Chairman Paul Atkins on Monday’s optimistic comments on the topic of debt.
On the stock front, things remain relatively calm, with most crypto stocks flat on the day. A notable exception is Semler Scientific (SMLR). This is a company that follows the Strategy (MSTR) playbook and aims to clean as much Bitcoin as possible. Stocks are down 10% more today, with stocks trading on their balance sheets at less than Bitcoin’s value.
Despite the profits of the day, placing it across the crypto market remains primarily reflective of a defensive tone.
“Funding rates and other leverage proxies refer to steady and cautious sentiment in the market,” Vetle Lunde, director of research at K33 Research, noted in a report Tuesday. “The broad risk appetite is significantly weaker given that BTC is approaching its previous all-time high.”
Binance’s BTC Perpetual Swaps recorded negative funding rates multiple days last week. The average annual funding rate is currently 1.3%, at a level related to the bottom of the local market rather than the top.
“Bitcoin usually doesn’t peak in environments with negative funding rates,” he wrote, adding that past instances of such positioning often precede meetings than revisions.
I draw a similar picture on a leveraged Bitcoin ETF. The ProShares 2x Bitcoin ETF (BITX) currently holds exposure equivalent to 52,435 BTC, well below the December 2023 peak of 76,755 BTC, and the influx remains stunted. According to Lunde, this defensive positioning leaves room for potential “healthy gatherings” at BTC.
Still, not all market watchers are convinced that current price action marks the onset of a sustainable breakout.
“Is this a real breakout? In my opinion, it’s probably not,” said Kirill Kretov, senior automation expert at Coinpanel. “More likely is part of the same volatility cycle that we now see gatherings, followed by a rapid drop caused by negative announcements and other changes in the narrative.”
According to Kretov, the current environment favors experienced traders who can navigate volatility-driven market structures. Technically, he considers BTC’s next major support levels to be $105,000 and $100,000.
