The digital asset analytics firm IntoTheBlock says certain factors could be hinting at “speculative overheating” in the crypto market.
IntoTheBlock notes on the social media platform X that funding fees for perpetual swaps have jumped to more than 10% and even skyrocketed to 20% on major exchanges.
“Such high costs signal growing bullish sentiment among traders. While still below Q1 peaks, sustained demand at these levels could hint at speculative overheating…
A major driver is likely the US government’s approach to crypto under Trump. With ‘strategic Bitcoin reserves’ on the horizon, many feel incredibly bullish on Bitcoin reaching a valuation far beyond $100,000.
People really want $100,000 BTC. Past cycles show more than one significant drawdown. It wouldn’t be a bad place for such a pullback.”
Bitcoin is trading at $98,783 at time of writing. The top-ranked crypto asset by market cap hit a new all-time high of $99,645 at one point on Friday morning and is up nearly 1% in the past 24 hours and more than 8% in the past week.
IntoTheBlock also notes that BTC witnessed $4.5 billion in net outflows off exchanges this week. The analytics firm defines net outflows as the number of coins that have left crypto exchanges minus inflows, or withdrawals minus deposits.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Follow us on X, Facebook and Telegram
Generated Image: Midjourney
Read the full article here