The cryptocurrency market is showing signs of cooling off from a recent overheating phase. Analysis indicates that Bitcoin's overheating level has dropped below 12%, suggesting a healthier market.
Decrease in Bitcoin Overheating Level
Recent data from CryptoQuant shows that Bitcoin's overheating level is currently below 12%, significantly reduced from past peaks that triggered price drops of 15-20%.
Historical UTXO Data and Its Significance
Analysis of UTXO (unspent transaction outputs) suggests that the current correction may signal a reaccumulation phase. Notably, overheating levels exceeding 10% are often associated with profit-taking by long-term holders.
Impact of FOMC on Bitcoin Market
Today's Federal Open Market Committee meeting may further influence Bitcoin's trajectory. Past FOMC decisions, such as hints of rate hikes in June 2025, have consistently led to corrections during overheating conditions.
The cooling of the Bitcoin market presents potential reaccumulation opportunities, but investors should remain cautious and consider the impacts of external economic factors.
