On-chain data bullish: what can stop Bitcoin now?admin, · Kategorien: Crypto
On-chain data bullish: what can stop Bitcoin now?
On-chain data shows that large investors have been buying more Bitcoin (BTC) in recent days. At the same time, the supply of BTC available on crypto exchanges has been falling steadily – what now stands in the way of the next all-time high?
Yesterday, Bitcoin fought its way back above the psychologically important mark of 50,000 US dollars. For a short time, the digital asset was even traded for 52,639 US dollars. This morning, however, the price fell again and BTC does not seem to be Crypto Cash making any headway at the moment. With a minimal gain of 0.81 per cent in the last 24 hours, the price is at 49,429 US dollars at the editorial deadline.
The bulls are struggling with the US$50,000 mark at the moment. Some on-chain data suggest that this could soon be broken sustainably.
Only just under four million Bitcoin are still liquid
Data from crypto analytics firm Glassnode shows that there are currently just under four million bitcoin left in free circulation.
The pattern suggests that the ever-shrinking supply of Bitcoin available for purchase may lead to a price rise in the long term, if at the same time more and more institutional investors want to buy BTC.
Data from Glassnode shows that the amount of liquid Bitcoin has decreased in the last few days. With bitcoin demand holding steady or rising, this is an extremely bullish signal for the cryptocurrency’s price.
On-chain data: Bitcoin whales are buying up
In a bull market, it always happens that large investors take profits. Especially when there has been a considerable price increase and the derivatives markets are overheated.
So-called Bitcoin whales can therefore repeatedly contribute to massive price fluctuations on the crypto market by selling off.
Nevertheless, on-chain data from crypto-analysis firm CryptoQuant show that large investors are still using corrections to re-buy Bitcoin.
It is therefore very likely that large investors remain optimistic about the future development of the BTC price. In addition, on-chain data analyst Ki Young Ju believes that the US$48,000 price level in particular will be used by institutional investors to buy Bitcoin.
Rising bond yields – danger for Bitcoin?
Not only Bitcoin has undergone a correction in recent weeks, but traditional markets have also come under pressure. The US stock indices S&P 500, DOW and NASDAQ were exposed to increased selling pressure in the same period as the crypto markets.
Analysts believe that rising US bond yields in particular are currently weighing on the stock markets. This is because many large investors are taking their profits from the comparatively risky stock markets and shifting them into bonds.
Just like the stock markets, comparatively riskier investment options such as cryptocurrencies are affected by this macroeconomic change. Nevertheless, experts consider it unlikely that bond yields will rise even more in the near future. Therefore, it seems likely that there will be renewed price rises not only in the crypto markets, but also in the equity markets.
In addition, Lael Brainard of the Federal Reserve (FED) did something to reassure investors. Against the backdrop of higher bond yields, she does not expect the US central banks to reduce their financial injections. Only when the US economy is in a solid position will such steps be considered. However, if bond yields rise anyway, this could also have a negative impact on the price of Bitcoin.