- Bitcoin’s double-digit surge this week has been fueled by fresh capital and extreme greed
- Is this rally just a blip—or the start of something bigger?
A week ago, Bitcoin fell to $89k – Its lowest level in over a month and a half. Fast forward to just seven days later and BTC has climbed by 17% since – Classic ‘buy the dip’ play. With the market this volatile, another 10% spike doesn’t just feel possible, it feels inevitable. So, are we looking at a $110k breakout next?
If greed doesn’t take over
Two big factors have sparked this double-digit surge in Bitcoin. First, inflation pressures have eased, with the latest CPI report revealing a dip that’s calmed market nerves. Second, Trump’s return to the White House.
Coincidence or not, these events have set the stage for a potential Bitcoin breakout. The 69.79k addresses holding 82.12k BTC, acquired at an average price of $106.88k, are now eyeing profits as the market inches closer to exceeding their purchase price.
Source: IntoTheBlock
The market is now in “extreme greed” mode. Bitcoin closed at $104k just yesterday, and investors are going all-in. Over 15.17k BTC have been pulled from exchanges at this price – Pumping $1.5 billion into the market.
A $110k surge is beginning to look more likely. But, with so much capital on the line, a sell-off could be just around the corner. If $8.7 billion in BTC enters profit territory, we might see a massive wave of selling. However, that’s just the beginning.
Imagine this – 4.72 million BTC, bought at an average price of $88,396k, could spark around $417 billion in market liquidity. With greed reaching “extreme” levels, the stage is set for a sell-off that turns countless holders into billionaires.
No doubt, the breakout is heating up. Also, fresh capital is pouring in and Bitcoin’s high-risk zone is buzzing. But, how long can this rally hold before the market turns?
Temporary hype or a lasting trend?
Both institutional and retail investors are diving in, with FOMO hitting new heights now. Nothing illustrates this better than Trump’s memecoin (TRUMP) exploding by a massive 260% in the last 24 hours alone.
Source: TradingView
However, this memecoin frenzy is draining liquidity from Bitcoin, which has only managed a modest 1.57% hike during the same period. In fact, the line between the two is becoming more and more blurred.
Read Bitcoin (BTC) Price Prediction 2024-25
Just like with memecoins, Bitcoin’s 17% surge has been driven by “hype” and trends. Investors are chasing the broader market momentum, and FOMO is pushing the needle higher. What happens when the dust settles?
We’ve seen memecoins crash after the hype fades – Could Bitcoin be next? While the rally is strong, it’s still early to call this a sustainable one. With billions at risk, brace for more volatility. If the “hype” fades and “value” takes a back seat, we could see Bitcoin retreat to $90k.
