Bitcoin prices continue to rise, and market sentiment reaches extreme bullishness

Market sentiment indicators show that investor confidence is high, and Bitcoin’s recent performance has been strong, with the overall market exhibiting a highly bullish atmosphere. According to the latest data, Bitcoin is trending upward in USD terms, with a 24-hour high of $90.57K, and current prices fluctuating around $89.87K, with a 24-hour increase of +0.51%. Meanwhile, Ethereum has gained +1.04%, Solana(SOL) has risen by +1.74%, and Dogecoin(DOGE) has increased by +1.01%.

Notably, Bitcoin’s market dominance continues to rise, currently reaching 56.39%, hitting a new all-time high. The market cap gap between Bitcoin and Ethereum has further widened. The Fear & Greed Index, which measures market sentiment, remains in the “Extreme Greed” zone, indicating that despite market fluctuations, investor confidence remains strong.

Trump Policy Expectations Boost Bitcoin Uptrend

The strong performance of Bitcoin reflects market anticipation of more friendly cryptocurrency policies from the United States. Several industry analysts point out that the upcoming U.S. presidential administration’s policy expectations are a key driver of recent market gains.

There are rumors that the inaugural speech may include plans to establish a Bitcoin strategic reserve. Although this has not been officially confirmed, market sentiment has quickly heated up as a result. Additionally, two related tokens launched by the Trump camp (TRUMP and MELANIA) have attracted a large number of retail investors, further boosting market momentum. Currently, TRUMP is trading at $4.94, and MELANIA at $0.15. The emergence of these meme coins has further stimulated market participation.

Meme Coin Boom Drives Price Volatility and Risks

The rapid rise of meme coins has indeed increased activity in Bitcoin and the overall market. After the launch of TRUMP and MELANIA, platforms like Solana quickly gained momentum, and capital flows shifted accordingly. However, this meme coin-driven hype also brings concerns.

Many small tokens with market caps below $100 million, including AI-related projects and other meme coins, experienced significant price corrections after capital flowed into leading meme coins. The shift in liquidity has impacted market structure, and late-stage investors face higher risks. These meme coins are essentially “zero-sum games,” and large capital inflows mean some participants will face losses.

Risks Behind the Market Sentiment Surge

Although Bitcoin’s price has hit new highs and market sentiment is extremely bullish, investors should remain cautious. Recent liquidation data shows that market volatility has caused significant losses for both longs and shorts, with considerable total contract liquidations across the network. This serves as a reminder that extremely bullish market sentiment often accompanies higher volatility risks.

Bitcoin’s continuous rise and expanding market share reflect optimistic expectations about policy improvements. However, any failure of policy expectations or a reversal in market sentiment could lead to rapid price adjustments. Investors should seize trend opportunities but also stay alert to changing risks, avoiding blindly chasing highs in overly bullish conditions.