Bitcoin’s price has been on a roll lately, climbing above $105,000 after a slump caused by the drama between Trump and Musk. On-chain data suggests this upward trend might continue. But there’s a twist.
Traders Betting Against Bitcoin
Data analytics firm Alphractal noticed something interesting: lots of leveraged traders are betting against Bitcoin, hoping its price will drop. This is based on tracking their positions (longs or shorts) and the funding rates in the derivatives market. Essentially, many traders are placing “short” bets.
Why This is Good News (Maybe)
While this sounds bearish, Alphractal points out that the market often does the opposite of what the majority expects. When everyone’s betting against Bitcoin, it can actually boost the price. Alphractal calls this a “warning signal” for a potential price surge.
The Contrarian Effect
The firm explains that extremely bullish or bearish sentiment often leads to the opposite outcome. So, this wave of traders betting against Bitcoin could ironically push its price even higher. If this trend continues, Bitcoin could potentially hit a new all-time high.
Bitcoin’s Current Price
At the time of writing, Bitcoin is trading around $105,700, up about 2% in the last 24 hours and over 1% for the week.
