- Bitcoin pulled back from its record high but analysts say the bull market is likely not over.
- Total crypto market capitalization reached about $4.07 trillion as traders anticipate easier financial policies.
- The Fear and Greed index rose to 64, suggesting room for further risk-taking.
- Profit-taking affected many major altcoins, with notable weekly gains seen in BNB.
- Experts are closely watching the $125,000 level for Bitcoin as a potential key resistance or breakout point.
Bitcoin recently fell back from a new all-time high, but market analysts indicate the current cryptocurrency bull run remains intact. The digital asset traded above $125,000 over the weekend, reflecting expectations of looser monetary and fiscal policies, particularly in the United States in response to an ongoing government shutdown.
The total value of the cryptocurrency market climbed to around $4.07 trillion. This rally pushed the crypto Fear and Greed index, a measure of investor sentiment, to 64. While this is considered high, it remains below extreme levels, signaling continued risk appetite among traders and potential for more gains.
Lower levels of futures liquidations, which refer to forced sales due to margin calls, support the view that the latest Bitcoin surge was driven mainly by spot buying and ETF activity. Only about $65 million in Bitcoin futures liquidations were recorded, a relatively small number given the move. Despite this, some investors took quick profits on Monday, with Bitcoin’s price dropping just over 1% in 24 hours.
Altcoins also saw profit-taking. DOGE and Cardano’s ADA led losses among major tokens. XRP, BNB (Binance’s token), and TRX (Tron) each declined up to 2%, while Ethereum‘s ETH dipped approximately 0.5%. The standout exception was BNB, which gained over 17% in the last week, indicating that sector rotation within crypto markets continues when overall demand is strong.
Reports show stablecoin supply—the pool of dollar-pegged crypto ready for trading—grew by a record $45 billion last quarter, with most of it issued on the Ethereum network. Higher stablecoin issuance (“dry powder”) is typically seen as fuel for ongoing crypto rallies.
Two market experts provided insight on the $125,000 level for Bitcoin. Nick Ruck from LVRG said the climb appears to be a hedge against inflation and institutional activity, especially as ETF flows pick up after dips. Alex Kuptsikevich at FxPro noted that long-term holders have sold around these price levels in recent months. He said, “The next step could well be an attempt to update historical highs approaching $125,000 … we may see a new episode of selling on the rise.”
Analysts agree that how Bitcoin performs at or near $125,000 will likely set the tone for upcoming price trends. Continued inflows and moderate funding rates could pave the way for a push higher, but rapid moves may prompt renewed selling from longer-term investors.
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