Slumping Bitcoin values, yet bullish sentiments persist.
Crypto Corner: Are Bitcoins Still a Good Bet?
Let's take a closer look at the current state of the Bitcoin market.
Bitcoin's Bull Run Continues
Over the past six weeks, Bitcoin holders have benefited from increased profits. But fear of another price depression stirs amid concerns about profit-taking activity.
According to week-to-week crypto asset flow, Bitcoin saw a substantial $1.84 billion inflow, pushing it toward $98k. However, short-term selling pressure has since set in.
But don't panic — fears of further profit-taking may be unwarranted. Metrics indicate that we're still in the thick of a bullish phase. The recent drop from $98k to $93k was just a normal pullback, nothing more.
Checking the Pulse of Bitcoin
As of press time, about 88% of the Bitcoin supply is in profit, which is generally a positive sign for the market sentiment. The Net Unrealized Profit/Loss (NUPL) is high, suggesting a bullish phase, while the Spent Output Profit Ratio (SOPR) indicates that more coins are being sold at a profit than at a loss.
Another encouraging sign is the steady decrease in the supply held by short-term holders (STH). This trend suggests that these investors may be transitioning to long-term holders (LTHs), signaling a strong outlook for Bitcoin.
On a Broader Scale
The recent weakness in the U.S. Dollar Index (DXY) might be helping Bitcoin's cause, as a weaker DXY tends to boost the price of crypto assets. Additionally, Bitcoin's resistance to correlation with mainstream financial markets is a positive development.
Looking Ahead
While Bitcoin's bull run indicates a promising outlook, it's essential to approach the market with a balanced view. The robust fundamentals suggest that Bitcoin's uptrend is here to stay, but one should stay informed and be prepared for potential volatile swings.
Sources:
- Glassnode
- CoinDesk
- Decrypt
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What's behind the recent 20% price drop for Cardano, and what does it mean for ADA's future?
- Despite Bitcoin's continued bull run, concerns about profit-taking activity have arisen, as fears of another price depression stir.
- In the current Bitcoin market, about 88% of the Bitcoin supply is in profit, a positive sign for market sentiment.
- The Spent Output Profit Ratio (SOPR) suggests that more coins are being sold at a profit than at a loss, indicating a bullish phase.
- The decrease in the supply held by short-term holders (STH) and the transition to long-term holders (LTHs) signal a strong outlook for Bitcoin.
- While the recent weakness in the U.S. Dollar Index (DXY) might be helping Bitcoin's cause, investors should approach the market with a balanced view, staying informed and prepared for potential volatile swings.
- The outlook for Cardano may be affected by a recent 20% price drop, and its impact on ADA's future remains to be seen.
