Bitcoin's fever shows no signs of cooling

Bitcoin tested levels above 64 thousand dollars during the day with an increase of over 10 percent. Matthew Sigel, Head of Digital Assets Research at VanEck Associates, commented, "We are seeing evidence of growing interest from both retail and institutional investors who want to take risks on the digital gold side. History shows that even steeper and more violent rallies are just around the corner."

Nevertheless, some analysts believe the rally is becoming overstretched. Stefan von Haenisch, Head of Trading Desk at OSL SG Pte in Singapore, pointed to rising borrowing costs to finance Bitcoin purchases as a potential risk.

Stefan von Haenisch assessed, "A correction seems inevitable after such an aggressive move - with funding rates at such high premiums, it is only a matter of time before leverage among long-term holders is wiped out. A correction toward the mid-50 thousand dollar range in Bitcoin would not be surprising."

News Source: 12punto