Bitcoin hits all-time excessive

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Isn’t it kinda poetic that Bitcoin broke a brand new all-time excessive on Bitcoin Pizza Day?

For the primary time ever, BTC crossed $110,000, which implies these two legendary pizzas would now be price over $1.1 billion.

That’s weirdly emotional. Idk. Looks like... a full circle second.

So what’s pushing BTC this excessive? A few huge issues.

First, the US signed commerce offers with each China and the UK, which eased world financial tensions that had been weighing down markets (together with crypto).

Commerce wars cool off → danger urge for food goes up → Bitcoin does its factor.

Second, institutional investments continue to grow.

Since final Wednesday, Bitcoin ETFs pulled in one other $2.2 billion in inflows.

Extra demand = extra value stress upward.

And you understand what's the very best half? The rally possible isn’t performed but.

We talked about it yesterday, and CryptoQuant contributor Crypto Dan agrees.

He broke it down utilizing a couple of key indicators that assist gauge whether or not the market’s getting overheated - or if there’s nonetheless room to develop.

1/ Funding charge

That’s a payment merchants pay once they use leverage within the futures market.

When it’s excessive, it normally means everyone seems to be betting on costs going up (aka going lengthy), and the market’s getting overly optimistic.

However proper now, although lengthy positions are rising, the funding charge remains to be comparatively low in comparison with earlier bull runs = the futures market isn’t displaying the type of overheating that normally results in a correction.