Digital asset analytics firm IntoTheBlock says certain factors could indicate “speculative overheating” in the crypto market.
InHetBlok notes on the social media platform
“Such high costs indicate growing bullish sentiment among traders. While demand at these levels is still below the first quarter peaks, this could indicate speculative overheating…
An important driver is likely the way the US government is tackling crypto under Trump. With “strategic Bitcoin reserves” on the horizon, many are feeling incredibly optimistic that Bitcoin will reach a valuation well above $100,000.
People really want $100,000 BTC. Recent cycles have shown more than one significant decline. It wouldn’t be a bad place for such a relapse.”
Bitcoin is trading at $98,783 at the time of writing. The top-ranked crypto asset by market cap hit a new all-time high of $99,645 at one point Friday morning and is up nearly 1% in the past 24 hours and more than 8% in the past week.
Also IntoTheBlock notes that BTC witnessed a net outflow of $4.5 billion from the exchanges this week. The analytics company defines the net outflow as the number of coins that left crypto exchanges minus inflows, or withdrawals minus deposits.
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Generated image: Midjourney
