Bitcoin Nears $100K But Signs Show Market Is Overheating

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Bitcoin Nears $100,000: A Sign of Overheating Market?

The cryptocurrency market is having a hectic few days as Bitcoin approaches the historic price of $100,000 .

However, according to analytics firm IntoTheBlock , the market may be entering a period of “speculative overheating” with notable signs.

Rising Transaction Costs: Optimism or Danger?
IntoTheBlock shared that funding fees for perpetual swaps – a gauge of market sentiment – ​​have surged past 10% and even reached 20% on some major exchanges.

This reflects strong bullish sentiment from traders.

However, this premium, if sustained, could signal excessive speculative growth, increasing the risk of a major price correction.

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The Impact of Bitcoin Policy Under Trump
Another factor boosting market sentiment is optimism from US government policy under Donald Trump .

The “Strategic Bitcoin Reserve” project has created a wave of expectations, with many believing that Bitcoin will surpass the $100,000 mark .

However, experts warn: “Previous cycles have seen sharp corrections after historic price increases. Now may be the time for investors to be cautious.”

Bitcoin Nears $100,000: History Is Near
As of Friday morning, Bitcoin hit an all-time high price of $99,645 , up 8% over the past week and currently trading at $98,783 .

However, it is worth noting that outflows from exchanges reached $4.5 billion this week, a sign that investors are moving assets off exchanges, possibly to preserve profits.

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Conclusion: Peak or New Correction Wave?
With record prices looming and warning signs from transaction fees and withdrawals, the Bitcoin market is at a critical crossroads.

Is this a sign of a sustained rally, or just a peak before a sharp correction? Investors need to be alert to these big moves.

 

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