Bitcoin could go much higher due to lack of FOMO and futures market euphoria — Analysts

5 hours ago

Key takeaways:

Bitcoin’s rally to caller terms highs happened arsenic backing rates and trading sentiment remained unusually subdued.
Rising stablecoin proviso and planetary M2 maturation bespeak untapped liquidity and the imaginable for further terms increases.
Long-term holders are not aggressively selling, reflecting their anticipation for continued Bitcoin terms appreciation.

Bitcoin (BTC) deed a caller all-time precocious connected May 21, with prices rising to $111,860 connected Binance connected May 22, but the markets deficiency the authorities of frenzy associated with caller highs. Economist and crypto commentator Alex Krüger noted that “this is the slightest euphoric caller all-time highs” for Bitcoin, aft highlighting subdued backing rates for Bitcoin crossed crypto exchanges.

The chart illustrates that the existent BTC backing complaint is importantly beneath erstwhile marketplace highs observed during March and November 2024. The backing complaint was six times higher successful Q1 and 3 times higher successful Q4 past year.

These debased rates bespeak minimal speculative enactment successful the futures market, with the rally driven by spot buyers alternatively than leveraged traders, reducing the hazard of over-leveraged corrections.

Such a script besides indicates that Bitcoin mightiness not person reached a authorities of euphoria yet.

The availability of untapped liquidity successful the crypto ecosystem underscores the imaginable for further growth. Stablecoin marketplace capitalization, often a starring indicator of incoming capital, has risen to 14% successful 2025. Tether’s (USDT) marketplace headdress jumped to $152 cardinal from $139 cardinal successful January, portion Circle’s USDC proviso has accrued by 35% to $58 billion.

Stablecoins often enactment arsenic a span for caller superior entering the crypto market, and their maturation suggests a important excavation of liquidity that has yet to beryllium afloat deployed into Bitcoin and different crypto assets.

Additionally, planetary liquidity trends supply further tailwinds. The planetary M2 wealth supply, which measures the full wealth successful circulation crossed large economies, grew by 5% successful Q1 2025, driven by monetary argumentation adjustments successful the US, EU, and Japan.

Cointelegraph reported a beardown correlation, exceeding 80%, betwixt Bitcoin’s terms and planetary liquidity, typically with a 60-day lag, pointing to further buying unit successful the coming months.

“Muted” profit-taking reflects assurance successful Bitcoin

Glassnode information adds different furniture of penetration into Bitcoin’s existent marketplace dynamics. Despite the caller highs, profit-taking among Bitcoin holders remains restrained. The information analytics level noted,

“When $BTC deed all-time precocious yesterday, full profit-taking measurement was astir $1.00B - little than fractional the magnitude realized erstwhile #BTC archetypal crossed $100K past December, which deed $2.10B. Despite a higher price, nett realization was acold much muted.”

This muted enactment suggests that semipermanent holders are not rushing to currency out, which typically reflects assurance successful further terms appreciation.

The deficiency of wide information indicates that Bitcoin’s rally is not a crowded trade, leaving country for caller superior to participate the market. The restrained profit-taking, combined with debased speculative enactment successful the futures market, paints a representation of a marketplace acold from overheated oregon “euphoria”.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.

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