The Heat Is Off—But That’s a Good Thing
After a monster run to $123K, $BTC has finally taken a breather—slipping 4% to $117K. But don’t mistake this dip for weakness. What we’re seeing is a healthy pause—smart money locking in gains, not exiting the market.
Over the last week, BTC climbed nearly 11%. Traders rotated profits into stablecoins like USDT, which saw a 1.2% market cap boost during the cooldown. The Fear & Greed Index hit 70—well into “greed” territory—usually a flashing yellow light for short-term corrections.
Rate Cut Drama Adds Fuel to the Fire
Markets are also digesting some political spice. Trump wants aggressive Fed rate cuts (+82% odds for September), but JPMorgan’s Jamie Dimon isn’t having it—warning against political interference in monetary policy.
That tension stirred uncertainty in the markets. With crypto still tightly linked to equities (0.85 correlation to the S&P 500), volatility spilled over into digital assets too.
Derivatives Got Flushed—And That’s Bullish
BTC derivatives took a reset. Liquidations dropped 67% to $156M as traders reduced their leveraged exposure. Open interest on perpetual contracts fell 6.92%, and funding stayed positive—meaning no major long squeeze panic.
If open interest holds above $700B, the market could stabilize fast. Below that? Expect a deeper flush before the next leg up.
PUMP Token’s Post-ICO Hangover
The $PUMP token crashed 30% post-ICO, dragging sentiment down across smaller caps. But it’s a reminder: hype alone can’t hold price. Fundamentals and timing still rule.
Final Take:
This isn’t the end of the rally—it’s a reset. Profit-taking, political noise, and leverage cooling all signal one thing: the market is maturing.
