Bitcoin’s Bullish Run Sparks Investor Optimism for Higher Sell-Offs
Investor Optimism Soars as Bitcoin’s Bullish Trajectory Continues
The recent surge in Bitcoin’s market value, with the cryptocurrency inching closer to $28,000, has ignited a wave of optimism among investors. Data from Santiment reveals that significant outflows of Bitcoin from exchanges, coupled with a rise in the Percent Addresses in Profit (7d MA) metric to a one-month high of 68.266%, indicate the potential for higher sell-offs.
Unique Bitcoin Addresses Reach a Six-Week Low
The number of unique Bitcoin addresses has hit a six-week low, suggesting 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, indicating decreased buying pressure, the drop in the put-to-call ratio showcases trader bullishness.
Implied Volatility Points to Future Volatility
Bitcoin’s At-The-Money (ATM) options have experienced a rise in Implied Volatility (IV), signaling expectations for future price volatility. However, a decline in miner revenue could intensify selling pressure.
Passive Accumulation Surpasses Fresh Supply
Over the past three months, only 11.69% of Bitcoin’s entire circulation has been traded, highlighting the dominance of passive accumulation over fresh supply. An astonishing 94.8% of Bitcoin’s supply has remained dormant, implying that even minor new investments could significantly impact its price.
Regulatory Uncertainties and Economic Fears Loom
Major investors are displaying hesitation due to regulatory concerns surrounding Binance and fears of an impending recession. However, anticipation is building for the approval of a US-listed spot Bitcoin ETF, which could potentially generate between $20-$30 billion.
Bitcoin and Gold: Valuable Long-Term Assets
Matrixport has emphasized the correlation between Bitcoin and gold as valuable long-term assets, contributing to Bitcoin’s rising popularity. Markus Thielen from Matrixport explains that memorizing Bitcoin private keys can mitigate confiscation risks, while Bitcoin’s swift and discreet cross-border asset transfer positions it as a modern equivalent to gold.
Ethereum (ETH) Dips Amidst Ongoing Conflict
Meanwhile, Ethereum (ETH) has seen a dip below $1,600 due to the ongoing Israel-Hamas conflict. Market observers are eagerly awaiting an anticipated halving event in six months and noting the increasing number of long-term Bitcoin investors.
This article provides valuable insights into Bitcoin’s current market trends, investor sentiment, and the potential challenges and opportunities it faces. As the cryptocurrency continues its bullish run, investors are closely monitoring the indicators mentioned above to make informed decisions.
