Despite an 86% plunge in Bitcoin transaction fees this quarter, market confidence remains resilient, with Bitcoin’s dominance hitting its highest level since April 2021.
BTC's market share reached its highest since April 2021 this quarter
Bitcoin's price traded mostly sideways throughout the quarter, while ETH and smaller tokens set new yearly lows in terms of price pic.twitter.com/TTEX7W4Yf2
— IntoTheBlock (@intotheblock) October 5, 2024
While Bitcoin’s price traded relatively flat throughout the quarter, major altcoins like Ethereum and smaller tokens hit new yearly lows.
Bitcoin fees have plunged 86% this quarter, yet market confidence remains unshaken, with Bitcoin dominance reaching new highs. pic.twitter.com/H6gdShqikb
— IntoTheBlock (@intotheblock) October 4, 2024
In terms of market activity, the ‘dolphin tier’ of traders—those holding between 0.1 and 10 BTC—has seen significant growth since July 4th. Specifically, wallets holding 0.1 to 1 BTC have increased by 25,671, while wallets with 1 to 10 BTC grew by 4,013. This uptick marks a reversal after a period of contraction earlier in 2024.
🐬 As crypto enjoys a positive Friday, we continue to see growth from the 'dolphin tier' of traders, holding between 0.1 to 10 BTC. After shrinking in number through most of 2024, since July 4th:
📈 0.1-1 BTC wallets: +25,671 More
📈 1-10 BTC wallets: +4,013 More pic.twitter.com/Fp9KtTh7bT— Santiment (@santimentfeed) October 4, 2024
Long-term Bitcoin holders, on the other hand, are taking profits, reducing their realized market cap by $6 billion. In contrast, short-term holders are ramping up, adding the same $6 billion to their realized cap, which signals growing risk appetite in the market.
Long-term holders are cashing in, slashing their realized cap by $6 billion.
Meanwhile, short-term $BTC holders are upping the ante, boosting their realized cap by the same $6 billion, signaling a bold appetite for risk. pic.twitter.com/wEKffoVWG6
— Kyledoops (@kyledoops) October 5, 2024
Interestingly, Bitcoin has been trading below the realized price of short-term holders since June 22. Historically, when $BTC dips below this level, short-term holders tend to sell to avoid deeper losses, which could trigger a broader market sell-off.
Currently, this critical level is at $63,000, making it a key price point to watch for Bitcoin’s next market move.
#Bitcoin has been trading below the short-term holder's realized price since June 22.
When $BTC falls below this level, short-term holders may sell to avoid deeper losses, risking a cascading sell-off. Watch this level closely, currently at $63,000, for the next market move. pic.twitter.com/LFWr9AT7SV
— Ali (@ali_charts) October 5, 2024
Bitcoin Spot ETFs Recorded Notable Inflows
On the institutional front, Bitcoin spot ETFs saw notable inflows on October 4. The Bitcoin spot ETF received $25.59 million in net inflows, while Grayscale’s GBTC ETF saw an outflow of $13.91 million. Bitwise’s BITB ETF attracted $15.29 million in inflows, and Fidelity’s FBTC ETF added $13.63 million.
On October 4, Bitcoin spot ETF had a net inflow of $25.5859 million, Grayscale ETF GBTC had an outflow of $13.9096 million, Bitwise ETF BITB had an inflow of $15.2854 million, and Fidelity ETF FBTC had an inflow of $13.6262 million. Ethereum spot ETF had a total net outflow of…
— Wu Blockchain (@WuBlockchain) October 5, 2024
With these dynamics at play, Bitcoin’s position in the market remains strong, even as fees have declined significantly.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
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