Will Bitcoin’s Wild Ride to $120,000 Be Stopped by Falling Funding Rates? 🤔💰

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After a brief weekend dip, Bitcoin (BTC) is back on its merry way, following the ever-increasing M2 global money supply and the Wyckoff Accumulation pattern like a well-trained puppy. Some analysts are predicting that BTC might just hit a new all-time high of $120,000 in the coming weeks, but the declining funding rates are throwing a bit of a damp squib into the party. 🎉🚫🎉

Bitcoin To Hit $120,000 Soon?

In an X post that’s sure to make your eyes pop, seasoned crypto market commentator Ted Pillows noted that Bitcoin is still dancing to the tune of the Wyckoff Accumulation pattern and is keeping a close eye on the growth in global M2 money supply. 🕺🎶

For those who haven’t been initiated into the secret society of crypto wizards, the M2 global money supply is the total amount of money floating around the world, including cash, checking deposits, and near-money like savings deposits. It’s a key indicator of global liquidity and central bank monetary policy, often used to predict inflation and economic growth. Think of it as the financial equivalent of a crystal ball. 🌍🔮

The analyst shared a chart that shows M2 money supply growth (in white) leading Bitcoin’s price action (in blue). According to this magical chart, BTC might just climb to $120,000 in the coming weeks and could even soar as high as $153,000 by October 2025. 🚀💰

Fellow crypto trader Merlijn The Trader chimed in, saying that BTC is “playing out the classic Wyckoff script.” After the false breakdown in April 2025, which saw BTC plummet to $75,600, the digital asset is now entering the “liftoff” phase, which is typically marked by strong upward price movement. It’s like watching a rocket ship take off, but with more zeros. 🚀💥

BTC Funding Rates Decline On Binance

While the Wyckoff pattern is suggesting a bright future for BTC, the exchange data is telling a different story. Specifically, funding rates on Binance are indicating that a growing number of traders are betting against the rally. It’s like a game of chicken, but with digital money. 🚗🚗

According to a CryptoQuant Quicktake post by contributor BorisVest, a significant number of traders are shorting the market. However, if BTC’s price continues to climb, these traders might find themselves in a bit of a pickle. 🥒🤔

The analyst noted that a mismatch between funding rates and price action often triggers forced short liquidations or margin calls. Both of these can amplify upward momentum in price, making it a bit like a snowball rolling down a hill. 🏔️❄️

Since Binance is the largest crypto exchange by trading volume, its funding rates often serve as a proxy for broader market sentiment. BorisVest explained:

As Bitcoin continues to rise, these shorts face growing pressure and are gradually forced out of the market – either through liquidations or margin calls. This process accelerates the bullish momentum, creating a feedback loop that pushes prices even higher. It’s like a domino effect, but with more zeros. 🌟💥

However, the strong June 2025 US employment data showed no signs of economic weakness, reducing the likelihood of a near-term rate cut from the Federal Reserve. This could weigh on risk-on assets like Bitcoin, which is a bit of a dampener. At press time, BTC trades at $108,435, down 0.4% in the past 24 hours. 📉😢

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2025-07-08 12:43