The post Is BTC price overheating at $111K? appeared on BitcoinEthereumNews.com.

Key takeaways: Bitcoin hit a new all-time high of $111,970 on May 22, but retraced to $110,700, with analysts noting mixed signals on market overheating. Funding rates and other metrics suggest a “healthy upward phase.” Bitcoin’s (BTC) price recorded a new all-time high of $111,970  on May 22. However, BTC price retraced shortly after to trade at $110,700 at the time of writing. Despite the correction, there are mixed signals about whether the price rally is overheated or whether this is a healthy pullback. Bitcoin “still not overheated” — analyst Bitcoin is not showing any signs of being overheated despite reaching new all-time highs this week, with several analysts pointing to fundamentals suggesting Bitcoin could rise further. “Overheating indicators such as the funding rate and short-term capital inflow remain low compared to previous peaks, and profit-taking by short-term investors is limited,” said CryptoQuant analyst Crypto Dan in a May 22 Quicktake note.  Crypto Dan pointed out that Bitcoin’s funding rate, an indicator of market overheating, shows an increase in long bets. However, these bets “remain much smaller compared to previous peaks,” suggesting “futures market overheating is negligible.” Bitcoin funding rates and STH SOPR. Source: CryptoQuant A spike in Bitcoin funding rates can sometimes cause worry among market participants about increased Bitcoin volatility and liquidation risks. Still, the funding rates are moderately positive, signaling that traders are optimistic about Bitcoin’s price and buyers are willing to pay sellers a fee to hold their positions. Meanwhile, the short-term holder (STH) Spent Output Profit Ratio (SOPR) metric reveals that despite STHs returning to profit, few have taken profits during the recent rise.  This indicator is currently valued at 1.02%, suggesting that STHs are realizing some profits at much lower rates. “In March 2024, there was significant profit-taking and a prolonged correction, but currently,…

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Filed under: News - @ May 24, 2025 1:23 am