Bitcoin Smashes $108K: Retail Traders Piling In or Just Another Bubble?

Bitcoin''s latest surge past $108,000 has markets buzzing—but who''s really fueling the rally?

FOMO or fundamentals? The retail crowd''s stampeding back into crypto, chasing gains like Wall Street hedge funds chase tax loopholes. Meanwhile, institutional players keep stacking SATs behind the scenes.

One thing''s clear: when BTC breaks six figures, everyone suddenly becomes a ''long-term holder''. Until the next 20% correction.

FOMO returns, but so does a familiar sign

Bitcoin’s sharp rebound to $108K from $105K yesterday has sparked a surge in retail optimism — reflected in the second-highest spike in FOMO sentiment in two weeks.

According to Santiment, trader mood has re-entered the “greed zone,” a territory historically associated with market tops.

Source: Santiment

After last week’s drop below $100K, many traders panic sold. Now, social sentiment is flipping bullish just as prices begin climbing again.

But in crypto, that kind of energy has often preceded reversals. With sentiment outpacing fundamentals, the crowd may once again be setting up for a contrarian move.

Whale wallets make their move

Fresh on-chain data confirms what many suspected; whales are stepping in aggressively.

Source: X

One wallet just opened a 20x Leveraged long worth over $50 million, aiming to capitalize on BTC’s momentum at $106.5K.

Source: X

Simultaneously, 997 BTC flowed out of Kraken into unidentified wallets in a series of large transactions, raising eyebrows across the board. These are high-conviction positions from entities that rarely act without purpose.

While retail traders wrestle with FOMO, whales seem to be betting on a deeper upside.

Momentum builds, but caution creeps in

Bitcoin’s RSI sat at 61.13 at press time, a sign of bullish momentum without yet hitting overbought territory. Price action showed strong recovery candles above $108K, though today’s slight pullback suggests short-term exhaustion.

The OBV at 1.74M supported continued accumulation, but a flattening slope hints that buying pressure may be cooling.

Source: TradingView

If OBV and RSI diverge further, a short-term correction could follow. Bulls still control the trend, but sustaining above $110K with volume confirmation will be key to avoiding a repeat of late-May’s rejection.