Despite a slight downward pause, the cryptocurrency market continues its upward trend. After testing record levels over the weekend, Bitcoin 
$77,690 is now trading between $125,000 and $123,000. In the altcoin market, profit-taking has become prominent. The market capitalization has risen to approximately $4.07 trillion. Meanwhile, the Crypto Fear & Greed Index remains at 64, indicating a cautious risk appetite. ETF-backed spot demand remains the primary driver for the market.
Bitcoin’s Test of the $125,000 Threshold
During the weekend, Bitcoin’s slight dip above $125,000 was linked to ongoing government shutdowns in the US, coupled with expectations of looser monetary policies. A new policy framework in Japan, akin to Abenomics, has also increased the likelihood of global supportive tones. Sundays are generally characterized by thin liquidity, so instead of a highly leveraged squeeze, the rise provided by ETF flows suggests a healthier uptrend.
Experienced analyst Michaël van de Poppe emphasized patience, noting that records are not likely to be surpassed in a single move. According to the analyst, a correction below $121,500 could present a reasonable buying area on the path to $150,000.
Alex Kuptsikevich from FxPro confirmed the technical breakthrough while noting that long-term addresses have been selling at peak levels since July. Nick Ruck from LVRG suggested that institutional fund flows and hedge demand against inflation concerns could accelerate ETF allocations during market dips. Limited liquidations of approximately $65 million in Bitcoin futures suggest the movement is not entirely squeeze-driven.
Profit-Taking Dominates Altcoins
In the past 24 hours, while Bitcoin’s price fell about 1%, Dogecoin 
$0.096194 and Cardano 
$0.247444 led losses in the altcoin market. Declines in XRP, BNB, and Tron approached 2%, with Ethereum 
$2,329 pulling back by about 0.5%. BNB distinguished itself on a weekly scale, climbing to $1,210 in the early hours and setting another record. With over a 17% increase in the past seven days, BNB indicates continued rotations within the ecosystem.
On a broader scale, the supply of stablecoins, considered a powder keg indicator, grew by approximately $45 billion over the last quarter. Two-thirds of new issuances occurred on the Ethereum network. The increase in supply could facilitate meeting new demand in record-high areas. The risk of delayed macro data due to the US government shutdown and the cautious tone of central banks align with the technical narrative.
