Bitcoin and the broader crypto market are experiencing high demand for bullish leveraged plays, indicating that the market may be overheated. While market makers' hedging is expected to keep BTC supported at around $100,000, increased activity raises the risk of pullbacks for other cryptocurrencies. Bitcoin reached a record high above $103,000 following news of a pro-crypto appointment to the SEC. The surge in funding rates for perpetual futures suggests an overcrowding in long positions, which could result in large liquidations and increased downside volatility. Support may come from the options market, where market makers tend to sell their holdings when options prices rise faster than the underlying asset to maintain neutral exposure. However, bitcoin price volatility could return toward the end of the year, particularly after the expiry of positive gamma options.



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