The anticipation of a pro-crypto stance under former President Trump’s new administration has fueled a sharp rally in Bitcoin and other cryptocurrencies. Since Trump’s electoral victory, Bitcoin has soared past the $90,000 mark, achieving an impressive gain of over 30% in less than a month.
While the bullish sentiment remains intact, caution may be warranted in the near term. From a fund flow perspective, signs of market exuberance are emerging. Consolidated fund flows across twelve Bitcoin ETFs reveal a staggering 20-day cumulative net inflow exceeding $8.3 billion. This figure not only surpasses the record levels observed during these ETFs’ market debut earlier this year but also suggests that the market may have entered an overextended phase.
Given the magnitude of recent inflows, the possibility of short-term profit-taking or consolidation cannot be ruled out. Investors should remain vigilant, as such adjustments often follow periods of rapid capital influx and heightened enthusiasm.
#Bitcoin, #Cryptocurrency, #FundFlow, #Overextended
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