Fact number one: VIX is falling, and Bitcoin is smiling.
VIX is a fear index that shows how fearful investors are. Right now, it hasn't just fallen; it has dropped from 55 to 25 — and continues to crawl down, like the level of trust in traditional banks. Bitcoin network economist Timothy Peterson, not to be confused with Tom Peters, claims that if VIX falls below 18 — hold onto your hats, because Bitcoin could shoot up to $135,000 in just 100 days.
His model, according to him, is 95% accurate. Of course, 95% sounds like we are buying insurance, not considering the hypothesis of the largest cryptocurrency rally since 2021. But who cares about boring numbers when a rocket is on the horizon?
Fact number two: The liquidity of stablecoins is at a historical maximum.
And now, attention: $220 billion. This is not the size of the Pentagon's budget; this is the current capitalization of stablecoins. Imagine: billions of dollars are at the starting line, like Olympic participants, just waiting for the signal 'go!' — to jump into Bitcoin, Ethereum, or some coin named after pizza.
This means that liquidity is like in a detective story: 'a lot, suspiciously a lot.' And usually, when liquidity is surging, Bitcoin reacts like a young bull in a spring meadow: it jumps up, breaking through all barriers.
Fact number three: Shorts are in panic — financing is negative.
And finally, the most delicious part: the funding rate for Bitcoin futures has turned negative. What does this mean? It means that everyone has decided to play against the market. Too many bears in one forest — someone is bound to get caught.
A negative rate is like a canister of gasoline in the hands of a sleeping smoker: just one spark is enough for a short squeeze to begin — when prices rise, and bears are kicked out of the market in droves. Cointelegraph reports: $3 billion in short positions are already on the brink of liquidation. This means the next stop is $100,000, and beyond that — the cosmos.
