XRP, DOGE, SOL See Profit-Taking, Bitcoin’s New High (Maybe) Could Still Rise Higher

What to know:

• Bitcoin surged above $125,000 over the weekend, suggesting market expectations for easier monetary policy.
• The total crypto market value rose to over $4.07 trillion, with a sentiment gauge indicating moderate greed.
• BNB saw a significant weekly increase. Stablecoin supply expanded by $45 billion last quarter, signaling potential for further market growth.

No, the bull run is likely not over yet. Bitcoin has pulled back from its record highs, and some alternative cryptocurrencies (altcoins) have seen profit-taking. However, this appears to be a typical bull-market breather, with analysts closely monitoring the bitcoin price action around $125,000.

BTC hit record high on Sunday

Over the weekend, BTC pressed above $125,000 in a tell tale sign of traders pricing an easier monetary and fiscal policy in the U.S. against the backdrop of the ongoing government shutdown. The market likely expects easier policies across the globe, including Japan, where the new PM is biased toward Abenomics, an aggressive easing strategy implemented by the former PM Shinzo Abe.

The total crypto market capitalization rose to roughly $4.07 trillion, lifting the Fear and Greed index to 64. While that's an elevated reading, it falls well short of euphoric levels, which indicates that there is scope for more risk taking in the market. This leaves room for bullish follow-through without needing blow-off leverage to get there.

The driver under the hood still looks like spot demand and ETFs rather than a one-day squeeze, especially as BTC’s move came on a Sunday which is typically a day of thinner liquidity and lower leverage.

Less-than-usual liquidations of a relatively small $65 million on BTC-tracked futures lend credence to that opinion. However, a quick retreat on Monday still suggests that some traders are unwilling to hold onto profits for long.