Bitcoin's bullish trajectory towards a market value of $28,000 has sparked investor optimism, according to data from Santiment. The significant outflows of Bitcoin from exchanges and the rise in the Percent Addresses in Profit (7d MA) metric to a one-month high at 68.266% suggest a potential for higher sell-offs.
Unique Bitcoin addresses have reached a six-week low, indicating either a consolidation by long-term investors or a potential slowdown in new user acquisition. Despite a decline in the Open Interest normalized Cumulative Volume Delta for Bitcoin, which suggests decreased buying pressure, the drop in the put-to-call ratio showcases trader bullishness.
The rising Implied Volatility (IV) of Bitcoin's At-The-Money (ATM) options signals expectations for future volatility. However, a decline in miner revenue could intensify selling pressure.
In the past three months, only 11.69% of Bitcoin's entire circulation was traded, indicating that passive accumulation has surpassed fresh supply. A staggering 94.8% of Bitcoin's supply has not moved recently, suggesting that even minor new investments could significantly influence its price.
Major investors are showing hesitation due to uncertainties stemming from regulatory issues surrounding Binance and fears of a recession. Despite these concerns, anticipation is building for the approval of a US-listed spot Bitcoin ETF that could generate between $20-$30 billion.
Matrixport has highlighted the correlation between Bitcoin and gold as valuable long-term assets, contributing to Bitcoin's rising popularity. Markus Thielen from Matrixport noted that memorizing Bitcoin private keys can mitigate confiscation risks and that Bitcoin’s swift and discreet cross-border asset transfer positions it as a modern equivalent to gold.
Meanwhile, Ethereum (ETH) has dipped below $1,600 amidst the ongoing Israel-Hamas conflict. This comes as the market awaits an anticipated halving event in six months and observes growing numbers of long-term Bitcoin investors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.