- Bitcoin (BTC) is down 1.8%, but trades above $117,800 are above $117,800 as traders make profits after their recent highest highs.
- AI-focused Crypto Tokens jumped 5% overnight as big companies like Google and Meta announced large infrastructure investments.
- Google plans to invest $250 billion in data centers. Over $90 billion was announced in AI/data pledges at the Trump-led summit.
Bitcoin took a slight breather when East Asia’s opening business days, immersed 1.8%, but at the time of writing it is trading firmly above $117,800.
This pause comes as some traders are profiting after a strong run where major cryptocurrencies pushed multiple all-time highs.
While bullish sentiment remains strong, some market participants are seeking even higher price targets, veteran observers are ringing notes of attention, warning that risk is building as fast as market enthusiasm.
A paused rally?
Current market sentiment is a mixture of unlimited optimism and fundamental anxiety.
There is a clear belief between some of the recent rally being just the beginning, and there is a bold call for Bitcoin to go up to $160,000, $200,000 and even more.
However, Lennex Lai, chief commercial officer at Crypto Exchange OKX, warns that this enthusiasm can be a source of risk.
“Across the platform, there is an increasing number of aggressive long positions and increased funding rates as the headline “Crypto Week” raises emotions,” Lai told Coindesk in an interview on Telegram.
He stressed that at these rising levels, “risks can be built quickly — escalating trade tensions with the EU, Mexico and other trading partners could lead to sharp revisions.
Another risk is that happiness drives decisions. ”
Rye pointed to a slate of macroeconomic announcements that could sway global risk sentiment and set the tone for a broader market.
These include the release of the UK Consumer Price Index (CPI) and the US Core Producer Price Index (PPI), retail sales figures, and consumer sentiment data.
Past volatility and careful professional class echo
LAI’s concerns reflect the findings of K33 Research’s recent H1 2025 market report, highlighting similar risks and volatility were induced earlier this year.
The report noted that geopolitical turmoil and trade policy uncertainty have already driven significant market volatility, including a sharp 30% revision that fell to $75,000 at the beginning of the year.
The K33 report also stated, “Bitcoin struggled during this relaxation period, but by outperforming stocks in the aftermath of the release date, it provided relative strength and subtle hints for stocks.”
An important indicator of fundamental attention among veteran traders is the historically low funding rate seen during price increases.
“It averaged 4.51% for six months, the average six-month funding rate since December 31, 2022,” the report states.
This suggests that while prices are rising, professional traders continue to endure a sharp market reversal.
Renex Rye emphasized the need for a disciplined approach in this environment. “In moments like these, smart traders are focusing on strategies around sentiment, using discipline to manage risk,” he continued.
“The excitement at the top is authentic, but those who carefully manage their entry, exit and funding exposure are best for what comes next.” After all, he concluded that “strong momentum doesn’t mean that the market is invincible.”
Catch bids as AI tokens double their infrastructure
Bitcoin will consolidate, but another corner of the crypto market has experienced important gatherings. According to data from Coingecko, the AI-focused Crypto token jumped 5% overnight, pushing the sector’s total market capitalization to $29.6 billion.
The move has sparked new investors’ enthusiasm in both traditional stocks and digital token markets amid a fuss over major announcements from US tech giants about large investments in AI and data infrastructure.
On Tuesday, Google announced that it would invest $25 billion in data centers and AI infrastructure across the nation’s largest PJM electric grid.
The company has also agreed to purchase 3,000 megawatts of hydroelectric power through a $3 billion deal with Brookfield. To avoid losing, Meta reportedly plans to “multiple millions” of “normalities” to build an AI data center that includes Ohio’s multi-gigawatt facilities.
The announcement of these blockbusters was strategically timed around a Trump-led summit at Carnegie Mellon University. There, over $90 billion in AI, energy and data infrastructure pledges have been revealed.
This overwhelmingly bullish tone in AI from both the government and private industry appears to have rippled into the crypto token market, at least for now.
