Bitcoin at a record high! Is the big correction coming now?

Bitcoin at a record high! Is the big correction coming now?

On May 22, 2025, the Bitcoin price reached an impressive record high of $111,970, only to fall to $110,700 shortly afterwards. This significant price movement has triggered mixed signals that could indicate both market overheating and a healthy correction. However, analysts note that fundamentals for Bitcoin remain strong and point to further increases, such as Cointelegraph reported.

What is particularly notable is that the funding rate and short-term capital inflows are low compared to previous highs. This suggests that profit-taking by short-term investors is currently limited. While the funding rate shows an increase in long positions, this remains low from a historical perspective. These signs could create uncertainty about volatility and liquidation risks, but are largely interpreted positively.

Key figures and indicators

Another important indicator is the “Spent Output Profit Ratio” (SOPR) for short-term investors, which shows that hardly any profits have been realized. The SOPR currently stands at 1.02%, indicating a relative reluctance to take profits. Bitcoin’s MVRV Z-Score, a crucial tool for identifying over- or undervalued periods, has also seen a significant increase to 2.8. This could indicate that the market high has not yet been reached, which is of Bitcoin Magazine Pro is underpinned.

The MVRV Z-Score evaluates Bitcoin's market value compared to its realized value, using three metrics: market value, realized value and Z-Score. Historically, the Z-Score has served to predict market cycles and identify when market value exceeds realized value. This metric has shown in the past that it can potentially predict market highs within two weeks.

Emotional market sizes

The emotional mood among investors is reflected by the Crypto Fear & Greed Index, which currently stands at 78 points. This level indicates “extreme greed,” which can often indicate an impending correction, although it is not a guarantee of a decline. The market remains extremely volatile, but a recovery could be supported by increasing demand for ETFs and a decline in trade tensions.

The combination of these factors makes analysts optimistic about the future development of the Bitcoin market. Despite the current correction, there are signs that a potential trend reversal is imminent.