Following the current parabolic rise in the cryptocurrency market, some industry leaders are stating that the market is overheating and a correction may occur before the next boom.
Meme Coin Craze and High Funding Rates
Historically, there are some key indicators that signal crash warnings in the crypto market. Some of these warning signals are currently visible; meme coin craze, high crypto futures funding rates and extreme greed among investors.
According to the Crypto Fear & Greed Index, the sentiment of crypto investors has increased to 84, that is, the level of “extreme greed”. Bitcoin 
$87,585After exceeding the record of $93,300, this rate reached its highest level since April. In the past, these levels have heralded significant market corrections. As a matter of fact, after BTC reached the $ 93,300 limit, it started to drop needles below $ 90,000.
High Leverage Rates and Volatility
Kris Marszalek, CEO of Cryptocom, stated that current leverage ratios have reached unsustainable levels and investors should manage their risks carefully.
The lever needs to be cleaned. Please manage your risk carefully.
— Kris Marszalek, Crypto.com
According to CryptoQuant data, Bitcoin’s estimated leverage across all crypto exchanges reached 0.215 on November 13, down from 0.217 the day before. This is the highest level since October 2023.
The meme coin craze continues to create uncertainty in the market, with coins like Pepe rising over 700% and then falling. Additionally, high funding rates are a sign of unsustainable speculation and increase the risk of mass sell-offs if prices fall.
The RSI indicator gives overbought signals for Bitcoin and other assets, which often creates subsequent selling pressure in the market. High volatility indicates that the market is ready for big movements.
Warren Buffett’s advice for veteran investors: “Be fearful when others are greedy, be greedy when others are fearful.”
These alarming indicators in the crypto market tell investors to be careful. Factors that can affect the market include high leverage, excessive greed and volatility. It is important for investors to pay attention to risk management.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
