Bitcoin price recently slipped below $93,000,with analysts attributing the decline to elevated funding rates that signaled overly leveraged positions. However, the situation seems to have stabilized a bit. Hence, now crypto experts hint at BTC price surge to $100,000 before the end of this year.
What’s Next for Bitcoin Price?
Blockchain analytics firm IntoTheBlock explained the phenomenon on X, stating, “Bitcoin‘s retrace can be attributed in part to elevated funding rates, signaling excessively leveraged positions.” The firm added a positive note, observing that “funding rates have largely normalized, suggesting the leverage flush may have run its course.”
Bitcoin’s retrace can be attributed in part to elevated funding rates, signaling excessively leveraged positions.
The good news? Funding rates have largely normalized, suggesting the leverage flush may have run its course. pic.twitter.com/A2kJEk50uT
— IntoTheBlock (@intotheblock) November 26, 2024
Meanwhile, institutional interest in BTC continues to grow. Video platform Rumble has introduced a financial diversification strategy, allowing the company to allocate up to $20 million of its excess cash reserves to Bitcoin.
Rumble Chairman and CEO Chris Pavlovski commented on the decision, saying, “We believe that the world is still in the early stages of Bitcoin adoption, which has recently accelerated with the election of a crypto-friendly U.S. presidential istration and increased institutional adoption.”
He also highlighted BTC’s unique qualities as an inflation hedge. He added, “Unlike any government-issued currency, Bitcoin is not subject to dilution through endless money-printing, making it a valuable inflation hedge and an excellent addition to our treasury.”
Rumble’s strategy follows a recommendation from MicroStrategy Chairman Michael Saylor, whose company remains one of the largest institutional holders of Bitcoin. On November 24, Saylor revealed that MicroStrategy now holds 386,700 BTC, acquired for $21.9 billion at an average price of $56,761 per Bitcoin.
He disclosed that the company recently purchased 55,500 BTC for $5.4 billion, paying an average of $97,862 per Bitcoin. Despite Bitcoin’s recent dip, MicroStrategy reported robust returns, with a BTC yield of 35.2% quarter-to-date and 59.3% year-to-date.
BTC Price Action
Today, Bitcoin price slumped below the $92,500 level and bounced back to the $93,000 level shortly after. However, the downtrend continued with BTC price trading at $93,172.84, down by 2.16% on Tuesday November 26.
In addition, while the technical indicators show a better outlook and corporate buying has grabbed the spotlight, spot Bitcoin ETFs saw major outflows. On Monday, these ETFs saw a humungous outflow of $435.3 million. This could indeed weigh on the current BTC downturn if the bearish sentiment continues.
