Expert-Reviewed Crypto Insights: A Glimpse into Bitcoin’s Bullish Momentum
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Bitcoin’s Bullish Surge: A Market on the Rise
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As the cryptocurrency market experiences an optimistic shift, Bitcoin, the leading digital asset, has maintained a robust bullish momentum. This surge has sparked hopes for a sustained bull market phase. The renewed upward trend has positively impacted several aspects of Bitcoin’s market dynamics, notably the overall supply in profit.
Bitcoin Profitability and Growing Market Euphoria
Bitcoin continues to captivate the market as it gains bullish momentum. With its price on an upward trajectory, Kyle Doops, an on-chain expert and host of the Crypto Banter show, has observed a significant transformation in Bitcoin’s market dynamics.
Doops highlighted that the percentage of Bitcoin’s total supply held in profit has risen alongside the recent price surge. This trend is often a precursor to heightened investor excitement. Historically, such momentum has accelerated to parabolic levels when the majority of Bitcoin holders experience gains.
Recent data indicates that the supply in profit has soared to 87.3% from the March lows as Bitcoin reached the $94,300 mark. It’s noteworthy that the last time Bitcoin approached the $94,000 level, only 82.7% of the supply was profitable. This statistic suggests that nearly 5% of the supply was acquired at lower price points, indicating accumulation.
The sustained rise in Bitcoin’s profitability could increase demand for the premier digital asset among both retail and institutional investors in the upcoming days, thus reinforcing the current uptrend. Given that prices often become parabolic when most holders are profitable, Bitcoin might be poised for a significant rally. With sentiment improving and profitability metrics escalating, Kyle Doops believes that consistent profitability above 90% could herald the “next true euphoria phase,” based on historical precedents.
The Role of First-Time and Momentum Bitcoin Buyers
During this phase, Glassnode, a prominent financial and on-chain analytics platform, has noted a decline in profit-taking interest even as Bitcoin’s price rises. By analyzing the cumulative supply per cohort, Glassnode found that first-time buyers and momentum buyers are maintaining high levels of participation, while profit takers show moderate involvement.
This trend is encouraging as it reflects sustained demand from new traders and trend-following participants without exerting excessive pressure on distribution. The strong conviction among these groups further supports the durability of the recent rally.
This shift in investor behavior indicates a growing confidence in Bitcoin’s potential for further price increases. With investors displaying bullish sentiment amid rising prices, Bitcoin’s market dynamics may be gearing up for a more stable and consistent upward movement.
At the time of writing, Bitcoin is trading at $94,903, marking an impressive 8% increase over the past week. Investors are placing substantial bets on continued price appreciation, evidenced by a nearly 76% surge in trading volume within the last 24 hours.
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