Bitcoin’s New Era: Investor Confidence and Market Trends

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Changing Landscape: Bitcoin’s Stable Position Above $100,000

The cryptocurrency market is witnessing a significant transformation as Bitcoin (BTC) consistently maintains its value above the crucial $100,000 threshold. This development marks a “true paradigm shift” in investor sentiment, with a notable decrease in exchange deposit activity highlighting a burgeoning confidence in Bitcoin as a stable reserve of value.

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Historic Low in Bitcoin Exchange Deposit Activity

Recent insights from CryptoQuant contributor Darkfost illustrate a substantial decline in the number of Bitcoin wallet addresses depositing to exchanges since the bull market of 2021. The data indicates a sharp reversal from the previous growth trend, with the 10-year average of exchange deposit addresses now approximately 90,000.

Short-term metrics further emphasize this trend. The 30-day moving average has settled around 48,000, and daily deposits have decreased to just 37,000. This shift in investor behavior can be attributed to two primary factors:

• Firstly, the introduction of Bitcoin exchange-traded funds (ETFs) has diverted demand from spot exchanges, offering investors exposure to Bitcoin’s price movements without the complexities of self-custody.
• Secondly, retail activity has been relatively muted in the current cycle, naturally reducing active deposit addresses. Investors and corporations alike are adopting a long-term perspective, opting to retain Bitcoin as savings or treasury reserves rather than engaging in frequent trading.

Potential for a New Bitcoin Peak?

With fewer Bitcoin deposits occurring on exchanges, several indicators suggest the potential for a new all-time high (ATH). Analysis by crypto analyst CryptoGoos points to an exhaustion of short-term sellers, indicating a possible easing of selling pressure.

Additionally, the Bitcoin Rainbow Chart—a long-term valuation model—has recently given a “buy” signal, although broader market demand remains subdued. Favorable macroeconomic conditions, including a rise in the global M2 money supply, could benefit risk-on assets like Bitcoin. Some experts predict Bitcoin might reach up to $150,000 as liquidity continues to expand.

However, not all signals are positive. Miner-to-exchange transfers have surged to historic highs, possibly indicating increased selling pressure from Bitcoin miners. Currently, Bitcoin is valued at $105,141, reflecting a 2.6% increase in the last 24 hours.

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