If you missed it, Bitcoin (Cryptocurrency: BTC) It was completely torn. Following the recent US elections, Pro-cryptocurrency candidate After Donald Trump won the presidency, Bitcoin has soared more than 30% since election night, recently hitting more than $90,000.
The performance of this cryptocurrency has definitely caught the attention of both seasoned investors and beginners. But with Bitcoin at such high prices, it’s natural to wonder, “Is it still a good buy today?”
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Conventional wisdom says that buying at all-time highs is risky. However, there are two compelling reasons to suggest Bitcoin may still be a strong buy, one in the short term and one in the long term.
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At first glance, Bitcoin’s rise to $90,000 suggests the rally is over, and latecomers may feel they missed their chance. But that’s not the case.
An often overlooked metric, the Bitcoin perpetual futures funding rate, tells a different story. Although this may seem like a technical detail, understanding funding rates can help investors assess the sustainability of Bitcoin’s current rally.
The funding rate is a periodic fee exchanged between traders holding long (buy) and short (sell) positions. futures market. Their objective is to bring the futures contract price closer to the actual spot price of Bitcoin.
When the funding rate is positive, it indicates that there is an increased demand for long positions to pay fees on short positions and bet on price increases. Conversely, negative interest rates mean short positions pay out longs, suggesting that bearish sentiment prevails.
An increase in funding rates usually indicates that the market is highly leveraged and many traders are taking long positions with borrowed funds. Historically, Bitcoin prices have experienced local peaks when funding rates spike, as these leveraged positions are more likely to be liquidated during price corrections.
However, as you can see from the graph above, this is no longer the case. Data shows that funding rates remain low even as Bitcoin reaches $90,000, with recent price increases do not have Caused by excessive leverage. Rather, the rally appears to be driven by organic buying rather than speculative trading.
This healthy market structure is a positive signal. A rally driven by true demand rather than leverage leaves room for further price appreciation with less risk of a rapid correction caused by a wave of liquidations. Simply put, Bitcoin’s current price action shows that Bitcoin has a stable foundation for continued gains, and the rise to $90,000 is just a sign of things to come. It shows that.
When it comes to Bitcoin’s long-term potential, its appeal goes far beyond recent price movements. As the most decentralized, secure and finite digital asset, Bitcoin is unique in the investment world.
Its scarcity and resistance to manipulation make it stand out as “digital gold” in a financial environment where certainty is increasingly difficult to obtain. As global economic instability and inflation concerns continue, Bitcoin’s inherent scarcity (permanently capped at 21 million units) serves as a hedge against the ever-growing supply of fiat currency.
Furthermore, because of Bitcoin’s decentralized design, it is not subject to the kind of centralized control that plagues traditional financial systems. Unlike government-issued currencies, which tend to decline in value due to overprinting, Bitcoin’s value is not dependent on policy decisions or inflationary pressures.
Instead, its value proposition is based on reliable supply constraints and an open, secure network. This makes Bitcoin not only an inflation-resistant store of value, but also a tool for economic independence, offering people a way to maintain their wealth independent of the traditional financial system.
As global debt grows and systems become increasingly dependent on intervention, Bitcoin’s properties provide a form of financial sovereignty, an escape from the fragility of centralized systems.
As these qualities become widely recognized, demand increases, as evidenced by Bitcoin’s recent rise. But this momentum may just be a sign of things to come. Bitcoin’s core strengths are likely to gain further momentum as adoption expands, institutional involvement increases, and regulatory clarity improves.
micro strategy (NASDAQ:MSTR) CEO and Bitcoin advocate Michael Saylor captured this best when he said, “I will continue to buy the top forever.” His statement captures the essence of what Bitcoin offers. It’s not about chasing short-term profits. It is about maintaining the value of superior assets over the long term.
After all, while Bitcoin may offer the potential for short-term gains, it has historically rewarded patient, long-term investors. Over time, more people will become aware of these timeless qualities, but Bitcoin’s long-term growth potential is unlike any other asset on the market today.
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