Bitcoin Hits $125K, Total Crypto Market Capitalization Reaches $4.07 Trillion
The bull market in cryptocurrencies continues, with Bitcoin (BTC) reaching over $125,000. This recent surge is influenced by expectations of easier monetary policies globally, including in the U.S. and Japan.
Market Overview
- Total crypto market capitalization increased to approximately $4.07 trillion.
- The Fear and Greed index rose to 64, suggesting room for more market risk-taking.
- Spot demand and ETFs are primary drivers, not a one-day squeeze, despite BTC's movement on a typically low-liquidity Sunday.
- BTC-tracked futures saw relatively small liquidations of $65 million, indicating reluctance among traders to hold profits long-term.
Altcoin Performance
- BNB stands out with a weekly increase of over 17%, while other major altcoins like DOGE, ADA, XRP, and TRX experienced declines up to 2%.
Outlook
- The stablecoin supply expansion by $45 billion last quarter supports the bullish sentiment, with significant issuance on Ethereum.
- Ongoing U.S. government shutdown may delay data and prompt central banks toward caution, enhancing bullish momentum.
- Analysts suggest potential for BTC to retest historical highs near $125,000 amidst institutional flows and inflation concerns.
Key Level: $125K
- Reaching $125,000 quickly and retreating could indicate strong supply pressure.
- A gradual increase with stable funding might allow BTC to surpass this level.