Bitcoin surged to $58,000 today, sparking renewed optimism among retail traders. Wallets holding less than 1 BTC now account for their largest share of the supply in seven months, signaling growing interest from smaller investors.
However, for Bitcoin to return to its all-time highs, analysts suggest a different ownership pattern is needed.
đł Bitcoin has reached as high as $58K today, with sentiment among retail traders beginning to look a bit more positive. Wallets with <1 BTC now hold their highest ratio of supply in 7 months.
However, an ideal setup for crypto to rebound back to all-time high levels would⌠pic.twitter.com/riPbS2W9qz
— Santiment (@santimentfeed) September 10, 2024
For a sustained rally, the ideal scenario would involve a decrease in wallets holding less than 1 BTC, steady growth among those holding 1 to 100 BTC, and aggressive accumulation by holders of 100+ BTC. These shifts would indicate increased confidence from more substantial investors, signaling a more robust market outlook.
Meanwhile, the Bitcoin mining sector is becoming more competitive, with the networkâs hash rate nearing new all-time highs. Minersâ faith in the Bitcoin network remains strong, but the short-term outlook is uncertain.
The competitiveness of the Mining landscape and their conviction in the #Bitcoin Network continues to rise, with the Hash Rate blasting towards new ATHs.
However, investors remain unconvinced in the short term, with exchange-related onchain volumes beginning to languish.⌠pic.twitter.com/MQBsKh6QeF
— glassnode (@glassnode) September 10, 2024
On-chain exchange volumes have slowed, and despite Bitcoinâs decoupling from gold as investors move to a risk-off approach, sentiment remains bearish.
Bitcoin remains in a bear phase and it has decoupled from Gold as investors switch to risk-off mode.@cryptoquant_com
Our latest crypto report: https://t.co/XPaaGrs1Wz
— Julio Moreno (@jjcmoreno) September 11, 2024
Bitcoin Miners Sells Off Their HoldingsÂ
In the past 72 hours, miners have sold over 30,000 BTC, worth around $1.71 billion, reflecting cautious sentiment among this crucial group of market participants.
#Bitcoin miners have sold over 30,000 $BTC in the last 72 hours, worth around $1.71 billion! pic.twitter.com/OuaiIo7QZ9
— Ali (@ali_charts) September 11, 2024
However, the growing use of leverage in Bitcoin derivatives suggests that some investors are positioning for a potential price rebound.
Bitcoinâs Estimated Leverage Ratio Soars to New YTD High
âThe recent increase in the #Bitcoin Estimated Leverage Ratio suggests a growing trend among investors toward higher leverage in the derivatives market.â â By @EgyHashX
Read more đhttps://t.co/kg2dFbWmNk pic.twitter.com/dz66erFOvE
— CryptoQuant.com (@cryptoquant_com) September 11, 2024
Signs of bullish momentum are also emerging as Bitcoin reserves on exchanges dwindle, while stablecoin reserves rise, indicating a buildup of buying power.
Yesterday saw the largest net Bitcoin outflow from exchanges since May, with a net outflow of $750 million.
This signals significant accumulation by $BTC holders pic.twitter.com/dA2Rvv6MGA
— IntoTheBlock (@intotheblock) September 11, 2024
Additionally, yesterday saw the largest net Bitcoin outflow from exchanges since May, with a $750 million outflow, signaling significant accumulation.
Bitcoin's Next Bull Run?
âDecreasing #Bitcoin reserves and rising stablecoin reserves indicate a bullish outlook for Bitcoin. As the market supply tightens and buying power builds, we could be on the verge of a price rally.â â By @OnchainTarek
Link đhttps://t.co/frUAfdSBrk pic.twitter.com/4fxB9cowf1
— CryptoQuant.com (@cryptoquant_com) September 11, 2024
Spot ETFs are also seeing renewed interest, with a net inflow of $117 million on September 10. Grayscaleâs mini Bitcoin ETF saw a $41.128 million inflow, while Fidelityâs FBTC attracted $63.156 million, pointing to increasing institutional demand.
On September 10, the total net inflow of Bitcoin spot ETFs was $117 million. Grayscale mini ETF BTC had a single-day inflow of $41.128 million, and Fidelity ETF FBTC had an inflow of $63.1561 million. https://t.co/59u0BnEqLG
— Wu Blockchain (@WuBlockchain) September 11, 2024
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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