Why Is Bitcoin Not Facing Selling Pressure?  

Glassnode analyzed this situation and pointed out that despite 100% supply profitability, investors remain cautious about selling their Bitcoin holdings. According to the platform, the total profit-taking volume at prices above $111,000 was around $1 billion. This figure is less than half of the $2.1 billion recorded when BTC first crossed $100,000 last December.  

Funding rates indicate that Bitcoin’s current rally is healthy and organic. These rates were six times higher in Q1 and three times higher in Q4 of last year. The current low rates suggest minimal speculative activity in the futures market.  

This means the rally is driven by real purchases in the spot market rather than leveraged trading. As a result, the risk of sudden and sharp corrections is reduced, offering a safer environment for investors.  

Glassnode stated:  

“Despite higher prices, profit realization was much more limited.”  

This data shows that current investors remain patient and focused on the long term. At the same time, it supports the view that Bitcoin still holds strong upside potential. Analysts say Bitcoin’s rise is fueled by spot buying rather than leveraged positions, with futures funding rates remaining low, indicating restrained risk-taking and more organic price moves.  

On the liquidity side, there is a noticeable increase in stablecoin supply. Moreover, the global M2 money supply growth points to a large cash reserve ready to be deployed in the market. All these factors support the idea that Bitcoin can continue rising.  

Additionally, global liquidity trends continue to provide support for BTC. The global M2 money supply, which measures the total money circulating in major economies, grew by 5% in Q1 2025. This growth was influenced by monetary policy easing in the US, European Union, and Japan.  

NOT INVESTMENT ADVICE  

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Political Easing Triggers Market Optimism

Statements from U.S. Treasury Secretary Scott Bessent regarding easing U.S.-China trade tensions, followed by former President Donald Trump’s remarks about substantially lowering tariffs on Chinese goods, were welcomed by markets. Trump also mentioned he has no plans to replace Federal Reserve Chair Jerome Powell.

Following these developments, Bitcoin surged by 6.79%, reaching close to $94,000—its strongest one-day performance since April 9. Ethereum climbed 11% to $1,175, marking its best day since April 2.

Open Interest Growth Reflects Investor Optimism

Platforms such as Binance, Bybit, OKX, Deribit, and Hyperliquid saw significant increases in open interest for perpetual futures contracts, signaling increased market engagement.

BTC perpetual futures open interest rose 10% to $17.83 billion, the largest single-day jump since early March. At that time, Trump had floated the idea of a strategic digital asset reserve that would include Bitcoin and Ethereum.

Joao Wedson, CEO of Alphractal Research, shared on X, “Bitcoin’s open interest grew faster than its price, with most positions originating from Binance. A large portion consists of long positions, so we might see heightened volatility in the short term.”

Short Squeeze and Funding Rates in Focus

The rally may have been supported by a short squeeze, as funding rates were negative 24 hours earlier—indicating a bearish tilt in the market. In such cases, rapid short position liquidations can accelerate price increases.

Ethereum mirrored Bitcoin’s momentum, with its perpetual open interest jumping nearly 16% to $6.60 billion, the biggest daily gain since November 27.

Positive Funding Rates Support the Rally

Funding rates for BTC and ETH are currently positive, ranging between an annualized 5% to 10%, indicating that long positions dominate.

These rates, paid every eight hours, are used to keep perpetual contract prices aligned with spot prices. A positive funding rate reflects that traders are willing to pay to hold long positions—often seen as a bullish sign.

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