Bitcoin’s been on a tear, soaring 35% in just 22 days thanks to the arrival of US ETFs. But even amid the party, whispers of “when will it stop?” are starting to rumble. So, how can we spot the next peak before it hits? Buckle up, as crypto experts share their insights:
Maartunn, the CryptoQuant community manager, sees bumpy roads ahead. He blames the tug-of-war between spot ETF demand and futures speculation: “Volatility will be intense. Spot ETFs pump Bitcoin daily, but futures bets go even higher.” He points to a $700 million jump in open interest during the recent surge, suggesting fragile price action. “Expect ups and downs,” he warns, but hey, that’s trading for you!
Ari Paul, CIO of BlockTower Capital, agrees strength is there, fueled by ETF inflows and infrastructure progress. But he cautions against excessive leverage, which could trigger a deeper pullback. “Speculative bets are rising, with funding rates climbing,” he observes. While the bull trend seems solid, he sees signs of overconfidence.
Will Clemente III, ever the contrarian, challenges Paul’s leverage claim. He argues that current futures markets aren’t as wild as they were in 2021’s peak, hinting at potential for even higher highs. “Where’s the excess leverage?” he asks, pointing to calmer basis rates and funding. He believes things can get “wonkier,” suggesting more room for growth.
ETF Demand: A Double-Edged Sword
Julio Moreno, CryptoQuant’s research head, brings a fresh perspective. Spot Bitcoin ETFs have injected $9.5 billion into the market since their January launch, a massive 2% of all Bitcoin investment ever. “This is great for price,” he says, “but if demand slows or outflows begin, it could be risky.”
Bitcoin’s on a roll, but experts urge caution. Keep an eye on volatility, leverage, and ETF demand to navigate the upcoming twists and turns. Remember, even the wildest bull runs eventually find their peak. Stay informed, trade wisely, and enjoy the ride!
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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