3 reasons why a Bitcoin rally to $125K could be delayed

Despite Bitcoin showing resilience after a significant flash crash that wiped out $15 billion in futures open interest, several factors could hinder a rally to $125,000. Firstly, ongoing concerns surrounding the US job market and potential economic slowdown have made investors risk-averse. Recent data indicated a drop in job additions, while concerns about US-China trade relations could exacerbate volatility as tariffs loom. Secondly, negative funding rates in Bitcoin derivatives markets indicate heightened caution among traders. Some markets display arbitrage opportunities, but limited market maker activity reflects increased counterparty risk. Lastly, the unresolved US government shutdown adds to macroeconomic uncertainty, further complicating the Federal Reserve's outlook ahead of critical economic data releases. Although Bitcoin remains a sought-after asset, traders' diminished short-term risk appetite could delay reaching new all-time highs for several weeks or months.

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