Bitcoin has reached the $110,000 mark for the second day running, buoyed by significant gains in altcoins. Positive news in the decentralized finance (DeFi) sector, particularly comments from SEC Chair Paul Atkins, has driven the altcoin market, notably for UNI and AAVE, which surged 24% and 13%, respectively.

In contrast, while Bitcoin recorded a modest increase of over 0.9%, the overall crypto market signals maintain a cautious tone as negative funding rates hint at possible headwinds ahead. “Funding rates and other leverage proxies indicate a prudently cautious market sentiment,” said Vetle Lunde, drawing attention to negative funding rates in the perpetual swaps market which generally indicate local market bottoms.

Despite this, not all market analysts are optimistic about a lasting breakout. Kirill Kretov remarked, “Is this a true breakout? Probably not,” indicating a probable volatility cycle that could lead to sharp market corrections.

Summary

• Bitcoin remains above $110K, showing resilience.
• Prominent altcoins have rallied as well.
• Experts advise caution amid negative market indicators.

“Bitcoin does not usually peak in environments with negative funding rates,” noted Lunde, emphasizing historical patterns suggesting that such conditions often precede positive trends.