"The price of BTC has risen so high, it must come down soon, right?"
Cryptocurrency king Bitcoin's (BTC) bullish climb up to $64,000 was largely fueled by huge net inflows into the United States (US) spot BTC ETF which topped $7 billion this week.
However, the lack of supply of BTC available for purchase on the open market has continued to be a concern after more than half of all BTC in circulation has been inactive for more than two years.
According to Stephane Ouellette, the Chief Executive Officer (CEO) of FRNT Financial said that short-term holders are starting to offload positions and fears about the crypto market collapsing due to a liquidity crisis do not necessarily occur.
The unrealized profit margin for short-term BTC holders means that those who might become regular traders of the digital asset are not long-term investors who are at extremes after its recent drastic rise.
Additionally, the recent surge in BTC prices has made it very expensive to open long positions in the token's permanent futures market, but be aware that there is a possible downward movement.
It is well known that the funding rate for BTC permanent futures is at the highest level since April 2021 and when the cost of opening new long positions becomes too high, the price of BTC tends to stop for a while or experience a correction in the near future.
As of this writing, the price of BTC trading at $61,157 has decreased slightly by 0.19% in the last 24 hours with a market capitalization of over $1 trillion but is still up 19.13% over the last week.
