Bitcoin’s price recently shot up to an all-time high of $89,000 on Nov. 12, causing massive losses for traders who had bet on prices falling.
This single-day jump of over 10% wiped out more than $700 million in “short” trades from over 173,000 traders, including a notable single large trade of $15.70 million on Binance, according to data from CoinGlass.
Moreover, investor excitement is running high, shown by the “Fear and Greed Index” hitting “Extreme Greed,” which hit a level of 85. This high score means many investors feel confident about big profits ahead, but it also suggests that investors are optimistic and may be taking higher risks than usual.
Thanks to Bitcoin’s rise, the total crypto market surged 9.6% to break past $3 trillion in value, with Bitcoin making up nearly 59% of the amount.
The excitement didn’t stop with Bitcoin. Dogecoin (DOGE) saw its price skyrocket by 33% in one day, marking its fourth straight day of gains. It’s also up by 150% over the past week, bringing it closer to $1. In fact, Dogecoin futures saw $68 million in trades close in just 24 hours as investors speculated on its price.
Amid all this, some crypto experts are sounding a note of caution. Kris Marszalek, CEO of Crypto.com, pointed out on X that “leverage needs to be cleaned up before [Bitcoin’s] attack on $100K.”
This means that to keep prices rising safely, the market might need to cool off a bit and reduce the amount of borrowed money fueling these trades. Bitcoin’s current leverage ratio, which also means how much money is being borrowed to trade, is now at a one-year high of 0.217, as shown by CryptoQuant.
Meanwhile, this “Extreme Greed” level reminds many of what happened in April 2021, when a similar excitement led to a drop in Bitcoin’s price from over $69,000 to around $56,500 in a few weeks. However, investors are also optimistic after Donald Trump’s recent re-election, as he is expected to support the crypto markets.
Also Read: Germany Missed $1.7 Billion Profit by Selling 50,000 Bitcoin
