Bitcoin Nears All-Time High—FOMO or Smart Play?

Bitcoin’s price is knocking on the door of its historical peak—again. The crypto king’s relentless rally has skeptics grinding their teeth and bulls high-fiving. But here’s the real question: is hopping in now genius or greed?

The case for buying: Halving hype meets ETF mania. Institutional money’s flooding in, and the ’digital gold’ narrative hasn’t lost its shine. Technically? Still room to run before hitting resistance levels that matter.

The case against: Every trader and their dog sees this coming. Classic ’buy the rumor, sell the news’ setup. Plus, Wall Street’s suddenly crypto’s biggest cheerleader—since when did bankers become our friends?

Bottom line: This isn’t 2021. The market’s matured, but so have the traps. DYOR—or enjoy being the exit liquidity for some hedge fund’s yacht fund.

In Brief

• Bitcoin surpasses $105,000, nearing its all-time high in a context of contained euphoria.
• Altcoins like Ethereum, XRP, and Dogecoin benefit from the momentum, but BTC’s market share declines.
• Despite positive signals, geopolitical uncertainties and volatility urge caution.

A Meteoric Rise of Bitcoin, but At What Cost?

Bitcoin surpassed the symbolic threshold of $105,000 this Sunday, a first since January 2025. An important psychological barrier, which brings the queen of cryptos to less than 3% of its all-time high ($108,786), reached on the day of Donald Trump’s inauguration. This renewed strength – +2% over 24 hours and +25% over one month – seems to be part of a cautious optimism, favored by the easing of the American trade war.

But beware, the current euphoria might mask a more nuanced reality. Because while the trend is upwards, it is also accompanied by a troubling phenomenon: Bitcoin’s dominance in the crypto ecosystem is decreasing.

In other words, its market share is eroding as altcoins like Ethereum, XRP, or Dogecoin gain ground. For some analysts, however, this dynamic does not signal the arrival of a sustainable altcoin season. It rather reflects a temporary appetite for risk assets in an still fragile context.

Short position liquidations, which exceeded $128 million in a single day, demonstrate a harsh market for pessimists. Contrarian traders have learned the hard way: betting against this bullish trend can be very costly.

XRP, Dogecoin, and Ethereum: The Awakening of the Followers?

While BTC attracts the spotlight, attention also shifts to other players. XRP climbs nearly 4%, nearing $2.43, while ethereum advances 3.5% to $2,563. As for Dogecoin, it leads with an impressive 8% rise, reaching $0.232.

This renewed interest in altcoins is explained by several factors. First, the classic ripple effect: when Bitcoin goes up, investors turn to the “smaller” tokens seeking higher yields. Next, increased confidence in the crypto sector as a whole, fueled by a calmer geopolitical context, notably Trump’s retreat on some economic fronts.

But this euphoria could well be short-lived. Macroeconomic uncertainties, lingering geopolitical tensions, and possible volatility resurgence could bring investors back to Bitcoin, the crypto market’s SAFE haven. In other words, if strong winds blow, altcoins could sink again.

Granted, Bitcoin’s dominance is eroding. But believing this heralds a lasting reshuffling of the cards would be premature. Historically, altcoin season phases occur only after a sustained accumulation phase and bitcoin stabilization. Yet, we are still in the midst of speculative frenzy.

Seasoned investors know: when adrenaline rises, crowd movements can create illusions. A rapid rise does not guarantee solid consolidation. If the economic or political climate were to tighten, the market could quickly turn defensive, refocusing flows on Bitcoin and leaving other cryptos behind.

Bitcoin flirts with its all-time high, and the whole crypto market seems carried by a wind of optimism. But signals remain mixed. Between rising altcoins and underlying tensions, the time calls less for celebration than for strategic vigilance.

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