Bitcoin Hits $118,856 All-Time High, Market Capitalization Surges 2.34 Trillion

Bitcoin has recently achieved a new all-time high, reaching $118,856 and increasing its market capitalization to $2.34 trillion. This surge has sparked interest in the cryptocurrency's future trajectory, with analysts closely monitoring on-chain data for insights.

One notable analyst, known by the username CryptoMe, has provided valuable insights into Bitcoin’s price movement. According to CryptoMe, the short-term holders’ spent output profit ratio (STH SOPR) is currently at 1.02. This metric measures the ratio of realized profits or losses by investors who have held Bitcoin for less than 155 days. A reading above 1.0 suggests that Bitcoin is being sold at a profit, while values below 1.0 indicate losses. The current STH SOPR reading of 1.02 suggests that the market is not overheating, as sharp increases in this metric, especially into the 1.05-1.20+ range, have historically correlated with profit-taking phases and local tops.

CryptoMe also noted that the STH realized price is currently at $100,000, indicating that these investors are 17%-18% in profit and are opting to hold for further price gains. This aligns with the broader sentiment in the derivatives market, where open interest is climbing, signaling growing participation, but funding rates remain neutral to slightly positive. This lack of extreme funding imbalances suggests that traders are not flooding the market with overleveraged long positions due to fear of missing out (FOMO).

According to the analyst's forecast, these factors indicate that the Bitcoin market is far from overheating and there is still potential for more growth ahead. At the time of writing, Bitcoin is trading at $117,840, indicating a 3.40% increase in the past day but a slight 0.82% decline from the present all-time high. The asset’s daily trading volume is up by 96.53%, indicating strong market activity behind the ongoing rally, which backs the potential for a continuation.