Why Bitcoin’s Rally Isn’t Sparking? What Are Traders Waiting For? Analyst Explained

Bitcoin remains stable above $97,000 as investors remain cautiously optimistic ahead of major market events, including Donald Trump’s inauguration on January 20.

Analysts suggest this measured stance reflects a cautious approach to the new year's trading opportunities.

According to Coinglass data from the latest 8-hour contract cycle across major exchanges, the Bitcoin perpetual futures funding rate is at 0.01%. This remains in a neutral range, marking the highest rate in more than a week and indicating moderate market sentiment.

“Currently, there is no significant increase in the Bitcoin perpetual-term funding rate, which remains in the neutral range,” said Alvin Kan, COO of Bitget Wallet. “This stability shows that investors are optimistic but are waiting for the upcoming important events to become clear before moving into long positions.”

In addition to Bitcoin’s stability, AI-integrated tokens are emerging as a focal point for investors. These tokens leverage blockchain technology to optimize portfolio management and decentralized finance (DeFi). Alvin Kan highlighted this trend, saying: “AI tokens are becoming a major trend as AI integrates with the blockchain. AI agents are expected to play significant roles in portfolio management and blockchain governance by 2025.”

WeFi co-founder Maksym Sakharov echoed this sentiment, stating that the rise of AI tokens is a transformative shift in the crypto ecosystem, similar to the earlier rises of NFTs and DeFi. “AI tokens represent the fastest-growing segment of the industry, reshaping the ecosystem with innovative use cases,” he said.

Sakharov also made bullish predictions for Ethereum, with Steno Research predicting that the ETH/BTC ratio could rise from 0.035 to 0.06. Galaxy Research predicts that Ethereum’s price could reach $6,000 by 2025, while analysts from Bitwise expect it to regain its all-time high next year.

*This is not investment advice.