Gushiken Yona
Bitcoin soars to new heights, smashing past $81,000 for a new all-time high. However, a recent forecast hints at a significant year-end correction, pegging Bitcoin’s 2024 closing price near $59,000.
CryptoQuant CEO Ki Young Ju made a concerning prediction about the price of Bitcoin, the world’s largest crypto asset by market capitalization, citing an overheated futures market as the primary catalyst for the anticipated downturn. Ju issued his prediction via X (formerly Twitter) over the weekend, launching a contest offering 0.1 BTC to the user with the closest guess.
He acknowledged Bitcoin’s current price discovery phase. However, he expressed concern over the excessively high open interest in the Bitcoin futures market, which neared a record $50 billion, according to CoinGlass data.
“I expected corrections as BTC futures market indicators overheated,” Ju wrote. “But we’re entering price discovery, and the market is heating up even more.”
He cautioned that while a correction and consolidation period could potentially extend the bull run, a robust year-end rally might set the stage for a 2025 bear market. The unprecedented open interest in Bitcoin derivatives indicated heightened speculative activity and the potential for increased volatility. This surge in open contracts could amplify price swings, as traders reacted to market fluctuations and possibly triggered cascading liquidations.
Ju’s forecast injected a note of caution into the celebratory atmosphere surrounding Bitcoin’s record-breaking performance. His analysis highlighted the importance of evaluating derivatives market data, in addition to price movements, to gain a comprehensive understanding of prevailing market dynamics and potential future trends.
While the market reveled in the new all-time high, Ju’s prediction served as a timely reminder of the potential for sharp corrections and the cyclical nature of the cryptocurrency market.
Over the weekend, BTC staged a dramatic rally, surging to new all-time highs in a matter of hours. Early Sunday morning, the leading cryptocurrency crossed the $79,000 mark, subsequently powering through to breach $81,000 later that day. This rapid price appreciation underscores the intense bullish momentum currently driving the market.
Bitcoin’s price continues its meteoric rise, reaching $81,397.11 as of 11:28 p.m. ET on Sunday. This surge represents not only a 4.63% increase in the last 24 hours but also a significant acceleration of bullish momentum, with a 17.23% gain over the past week and an impressive 29.70% surge over the last 30 days.
This sustained upward trajectory underscores growing investor confidence and increasing mainstream adoption of the world’s leading cryptocurrency. Further fueling this rally is a dramatic 162.22% increase in 24-hour trading volume, reaching a staggering $84.37 billion.
This explosive growth in trading activity indicates heightened market interest and participation, likely driven by a combination of retail investors and institutional players entering the market. As a result, Bitcoin’s market capitalization has surged by 4.64%, reaching an astounding $1.60 trillion. With a circulating supply of 19.78 million BTC, this valuation solidifies Bitcoin’s position as a dominant force in the global financial landscape, data from CoinMarketCap showed.
The combination of strong price performance, surging trading volume, and expanding market capitalization paints a compelling picture of Bitcoin’s continued maturation as an asset class and its growing influence on traditional financial markets. However, investors should remain mindful of the inherent volatility in the cryptocurrency market and the potential for corrections even amidst strong bullish trends.
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Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
