According to Odaily, Galaxy Digital's report, released prior to approval, predicts that a spot Ethereum ETF may be listed on the exchange in July or August. The report does not provide further details on the potential listing, such as the specific exchange or the expected trading volume. The listing of a spot Ethereum ETF would mark a significant development in the cryptocurrency market, potentially providing investors with a new way to gain exposure to Ethereum. However, it's important to note that the report's prediction is not a guarantee, and the actual listing could be subject to regulatory approval and market conditions.

According to Foresight News, recent data from Coinglass reveals that the global cryptocurrency market experienced a liquidation of approximately $344 million within the past 24 hours. This figure includes the liquidation of $278 million in short positions and $65.43 million in long positions.

Ethereum, a leading cryptocurrency, saw a liquidation of about $118 million. Bitcoin, the world's largest and most popular cryptocurrency, experienced a liquidation of approximately $97.75 million. This data provides a snapshot of the volatility and risk associated with cryptocurrency trading, as large amounts of assets can be liquidated in a short period.

On Mar 05, 2024, 18:52 PM(UTC). According to Binance Market Data, Bitcoin has dropped below 64,000 USDT and is now trading at 63,882.789063 USDT, with a 3.97% decrease in 24 hours.

As the Bitcoin (BTC) and Ethereum (ETH) rally has gained pace over recent weeks, we have seen open interest in both assets nearing record-high levels reminiscent of the feverish days of the 2021 rally. This frantic increase in trading activity is a sure sign that the bull market is finally in full swing. However, the parallels with 2021 are also a more worrying indicator that the market is overheating, with further volatility for BTC and ETH prices likely around the corner. 

That isn’t to say we are anywhere near the all-time highs we will see later in the cycle, but overzealous investors would be wise to exercise a certain amount of caution at these lofty prices. Indeed, Bitcoin has risen more than 50% over the past 30 days and is closing in on its ATH, while Ethereum is shooting the lights out with a 50% rise over the same time period.

But it’s not just this rapid price appreciation that foreshadows imminent volatility in the two biggest crypto assets. Technical indicators like open interest and Bitcoin funding rates — a reliable forecasting tool when taken in aggregate — paint a picture of a rather frothy market.

Related: Why Solana will prevail despite Ethereum ETFs

Last week, the funding rates in Bitcoin perpetual futures listed on Binance surpassed 100% for the first time in at least a year, which means that leverage is skewed toward the bullish side. Meanwhile, rising open interest represents a spike in the volume of open BTC and ETH derivatives positions on exchanges, including both long (buy) and short (sell) positions in Bitcoin and Ethereum futures or options contracts. Together, high funding rates, extreme price movements and rising open interest often act as a warning sign for traders, particularly those using leverage.

Open interest in Bitcoin hit $31 billion on March 4, easily surpassing the $24.3 billion record set on April 14, 2021. Bitcoin’s price was sitting close to current levels at that time, opening at $63,524 — before falling some 23% to $49,078 by April 26, 2021.

Meanwhile, open interest in ETH futures sat around $12 billion as of March 4, edging closer to the $13 billion peak seen on Nov. 9, 2021 — the day ETH opened at an all-time high of $4,810. By November 19, ETH fell to $3,996, 17% below its peak.

Open interest in Bitcoin futures as of March 4, 2024. Source: CoinGlass

Drawing parallels with 2021, it seems apparent that BTC and ETH need a breather. Bitcoin has soared more than 180% in the year leading to March 4. In some major currencies, including the Argentine peso and the Japanese yen, it has already surpassed its previous record. ETH is lagging behind, having risen more than 120% in 12 months.

There are a number of reasons for Ether lagging behind Bitcoin in terms of price movements, not least the fact that the deadline for a spot ETH ETF approval is still a few months away. We can expect further price appreciation in the lead-up to this historic decision. Similarly, the Bitcoin halving slated for next month will almost certainly be a catalyst for further price increases, if history is any indicator. 

Related: 2024 will be the Ethereum network's biggest year in history

So the rising open interest and funding rates don’t change the fundamentals around BTC and ETH — fresh all-time highs are still all but guaranteed this cycle. They’re simply a sign that the crypto market is getting away with itself. Such frantic trading isn’t just down to professional traders or long-term believers in crypto — it also indicates a rise in FOMO, and that’s a house of cards that can easily crumble in the short term.

In such frothy markets, it’s particularly important to have a solid strategy and stick to it, without allowing emotions to get in the way. For options traders, this means watching the charts and the data, not just the green candles. For buy-and-hold investors, it’s remembering that crypto is a volatile asset class and all signs point to further volatility incoming.

But most importantly, it’s a reminder for anyone in crypto to stay calm and avoid getting carried away with all the excitement of assets soaring towards their ATHs. There will be plenty more chances to get excited in the coming months. It’s those who keep their cool amid the market turbulence that will be the most successful in this bull run.

Lucas Kiely is the chief investment officer for Yield App, where he oversees investment portfolio allocations and leads the expansion of a diversified investment product range. He was previously the chief investment officer at Diginex Asset Management, and a senior trader and managing director at Credit Suisse in Hong Kong, where he managed QIS and Structured Derivatives trading. He was also the head of exotic derivatives at UBS in Australia.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

On Mar 05, 2024, 04:02 AM(UTC). According to Binance Market Data, Ethereum has crossed the 3,700 USDT benchmark and is now trading at 3,704.850098 USDT, with a 6.68% increase in 24 hours.

According to BlockBeats, on March 5th, the exchange rate of Bitcoin to Japanese Yen reached a historic high, with 1 Bitcoin being equivalent to 10,267,442.84 Yen. This milestone highlights the growing strength of the cryptocurrency in the global market.

According to BlockBeats, on February 15, Justin Sun announced on social media that TRON will launch its Bitcoin Layer 2 solution. This integration will not only connect TRON with Bitcoin but also promote the inflow of funds into the Bitcoin network, injecting financial vitality into Bitcoin. The roadmap revealed by Sun includes three stages:

In the α stage, Bitcoin can be accessed through cross-chain connections with the TRON network. Assets based on the Bitcoin network will be expanded to TRON. Efforts will be made to integrate various TRON tokens such as USDT, TRX, BTT, JST, SUN, NFT, WIN, and USDC into the Bitcoin network through cross-chain technology. This will enable TRON's tokens to seamlessly interact and interoperate with the Bitcoin network. Plans also include investing in user-friendly wallets and tools that support BRC-20 tokens.

In the β stage, TRON will collaborate with multiple Bitcoin Layer 2 protocols and gradually announce significant partnership relationships. These collaborations will enable TRON users to participate in major Bitcoin Layer 2 network re-staking plans, supporting the development of the Bitcoin Layer 2 ecosystem through TRON's diversified asset portfolio.

In the γ stage, the release of the integrated TRON, BTTC, and Bitcoin network Layer 2 solution will mark an important milestone. The solution introduces a protocol compatible with Bitcoin, aiming to maintain the speed and low cost of the POS system while combining with BTC Layer 2 to ensure the security of POW and UTXO.

Bitcoin (BTC) is on the way to $55,000 this week — but warnings of a new bear market are already surfacing.

In his latest analysis on X (formerly Twitter) on Feb. 14, popular trader Titan of Crypto confirmed a $55,400 BTC price target next.

BTC price: Ichimoku analysis points higher

Bitcoin bulls continue to fight for the road toward all-time highs, with resistance around $52,000 currently forming the battleground.

Titan of Crypto, capturing overall market sentiment, suggested that “extremely bullish momentum” could take BTC/USD another 6% higher in the coming week.

Uploading a weekly chart including Ichimoku Cloud data, he outlined one more upside target left to hit, with two already achieved.

“Both target 1 & 2 have been hit but $50,900 is a strong level. If Bitcoin manage to close a weekly candle above, target 3 at $55.4k is next,” part of the accompanying commentary stated.

“Note that given the extremely bullish momentum target 3 has high chance to get hit even before the end of the week.”

BTC/USD weekly chart with Ichimoku Cloud data. Source: Titan of Crypto/X

As Cointelegraph reported, Ichimoku currently shows a rare bullish setup on weekly timeframes, with BTC price now clearing major resistance features.

Trader cautions over "unhinged greed" coming to Bitcoin

Looking ahead, however, concerns over a potentially “overheated” market are leading to BTC price downside predictions.

Related: Bitcoin bulls flirt with $69K BTC price target as crypto market nears $2T

In a lengthy X post, trader and analyst Credible Crypto warned that even if existing all-time highs are exceeded and BTC/USD passes $100,000, the odds of a snap correction are increasing.

This, he says, represents natural market dynamics — despite heavy inflows into the spot Bitcoin exchange-traded funds (ETFs), nothing can remain in “up only” mode indefinitely.

“At the end of the day, for every major parabolic rise there is a major crash, and vice versa,” he wrote.

“You don't get unhinged greed and euphoria (and the vertical price appreciation that comes with it) without an equal and opposite reaction when that euphoria peaks.”

Credible Crypto referenced another post by trader and YouTuber TXMC Trades, who earlier told readers not to trust in ETF inflows propelling Bitcoin higher ad infinitum.

While I do think that we are on an aggressive path to new all time highs at the moment, the tweet below is important to cement into your mind- as there will be a point in the relatively near future when a major crash/correction will be deemed "impossible" because we "are in a new… https://t.co/mYghO2GE4s

— CrediBULL Crypto (@CredibleCrypto) February 14, 2024

Others also maintain an air of caution over BTC price strength. For Michaël van de Poppe, founder and CEO of MN Trading, the market is already “slightly overheated.”

“I wouldn't be unhappy if we got a slight correction to return to reality,” he concluded on the day.

The inflow in the ETF is great for #Bitcoin. However, it's not the sole argument for the markets to move. If I look at this clean chart, it suggests that we're:- Super bullish.- Slightly overheated.I wouldn't be unhappy if we got a slight correction to return to reality. pic.twitter.com/ZNnoNQGeeK

— Michaël van de Poppe (@CryptoMichNL) February 15, 2024

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.