Is This The ‘Last Dance?’ Bitcoin (BTC) Smashes Another ATH, Euphoria Looms

As July’s third week opens, Bitcoin has set a fresh all-time high, touching $123,000. The world’s largest cryptocurrency has recorded an impressive gain of approximately 13% in the past week alone.

This market activity, along with a significant inflow of capital into spot Bitcoin ETFs, has sparked discussions about the possible onset of a market euphoria phase. However, on-chain indicators suggest a more layered picture.

“Prawns” Stay Out as Bitcoin Hits $123K

The rHODL ratio, which is a gauge of long-term holder behavior and wealth distribution across investor groups, currently sits at 32%. This points to continued caution among retail participants, often referred to as “prawns.” Historically, genuine market euphoria phases have aligned with significant retail inflows, a condition that CryptoQuant believes is not yet clearly evident in the current cycle.

Instead, the recent price momentum appears driven predominantly by institutional flows, while retail seems to have been sidelined as the rally extends. It is important to note that previous euphoric phases in the crypto market consistently followed mass retail entry after initial institutional-led rallies, which then led to parabolic price action.