Bitcoin reaches $93K as ETF volumes point to retracement
Bitcoin (CRYPTO:BTC) surged to an all-time high of $93,400, driven by strong demand for spot Bitcoin ETFs in the U.S.
This significant price increase, up from $68,000 on U.S. election day, represented a gain of about $25,000 in less than ten days.
ETF trading volumes exceeded $8.2 billion, aligning with previous market peaks, such as the March 14 high when Bitcoin hit $73,737.
Market analytics platform Santiment highlighted that despite substantial outflows, they remain lower than inflows.
In recent days, however, there has been a decline in inflows, suggesting potential short-term price adjustments.
With Bitcoin’s 35% gain within just over a week, the market has shifted toward heightened optimism and FOMO (Fear of Missing Out).
Many traders anticipate Bitcoin reaching $100,000 soon, but Santiment cautioned that extreme levels of market greed could signal an impending correction.
The platform noted that considering counter-trading strategies may be wise during periods of excessive bullish sentiment.
Historical trends show that when market sentiment is overwhelmingly optimistic, price pullbacks often follow.
The ETF-fueled activity and a decline in inflows could lead to increased short-term volatility for Bitcoin.
Analysts emphasise that rapid price surges typically come with subsequent adjustments.
At the time of reporting, the Bitcoin price was $90,795.22.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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