Bitcoin Nears $125K as Perpetual Futures Drive Price Higher but There’s a Catch

Bitcoin nears $125K as perp-driven futures activity fuels volatility and renewed market momentum.

Open interest hits $14.3B, signaling new positions and higher leverage risk across derivatives markets.

ETF inflows exceed $60B amid Fed rate cuts, boosting institutional demand and broader crypto optimism.

Bitcoin (BTC) continues to display sharp price swings as perpetual futures trading activity intensified over the weekend. The cryptocurrency briefly moved above its recent local high before stabilizing below its all-time high near $124,466. If the price holds near current levels, Bitcoin could open with another CME gap this weekend, mirroring the previous session. At the time of writing, Bitcoin was trading at $124,580.

BTC Price Action Driven by Perpetual Futures Movement

According to market analyst Daan Crypto Trades, “BTC has an interesting price action. A primarily perp-driven move on Sunday to take out the local high but just short of the all-time high.” The statement referred to the sharp upward movement that pushed Bitcoin near record territory while creating heightened volatility in the derivatives market.

The 15-minute chart showed the move beginning around the CME reference level of $122,448 before rising toward $124,466. Volume surged during the breakout, confirming that the rally was largely driven by perpetual futures traders

Source: CaptainFaibik(X)

Data indicated that BTC stabilized near $123,628 after the brief surge, forming a narrow trading range between $122,448 and $124,466. According to analysis prepared by Captain Faibik, Bitcoin reached a new all-time high of $125,700 after breaking above a descending channel. The projection on the chart outlines a potential continuation toward $140,000 if current momentum persists.

Market Sentiment Strengthens Amid Rising Open Interest and ETF Inflows

Bitcoin’s open interest reached $14.3 billion, surpassing the August peak. This expansion in open interest, coupled with rising prices, shows new positions being opened rather than short-covering. Such conditions indicate increased trader participation but also higher risk of liquidation cascades during volatility.

Institutional inflows have also strengthened. Data shows Bitcoin ETFs added over $3.25 billion last week, bringing total inflows above $60 billion. Analysts attribute part of this growth to the Federal Reserve’s rate cuts and renewed optimism toward digital assets as a hedge against inflation.

Daan Crypto Trades advised traders to remain cautious, stating that random market moves “can easily work you out on any positions.” The combination of rising leverage, tightening ranges, and approaching price discovery continues to keep the Bitcoin market volatile but active.

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