Bitcoin is one rally away from new highs, but overly euphoric bulls signal ‘overheating’ market
Bitcoin (BTC) has experienced a 39% surge in one month, briefly surpassing $105,000, indicating renewed market strength. Analysts report over 3 million BTC have returned to profitability, leading to daily capital inflows exceeding $1 billion. However, profit-taking is occurring, with Bitcoin's realized cap reaching an all-time high of $889 billion. Concerns arise as market sentiment appears overheated, with BTC's open interest at $68 billion and the Cryptoasset Sentiment Index at its highest since November 2024. Risks include regulatory uncertainty and a potential correlation with gold, which may signal a corrective phase for Bitcoin. Historical seasonality trends suggest caution, as June and September are typically poor months for Bitcoin performance.
