At Extreme Investor Network, we are always on top of the latest trends and developments in the world of cryptocurrency and blockchain. Today, we are excited to share with you some exclusive insights into the recent surge in Bitcoin (BTC) prices and the factors driving this bullish momentum.
According to a report from Bitfinex Alpha, Bitcoin has reached a 39-day high of $68,560, showcasing a remarkable recovery of over 29 percent from its local low on July 5th. This surge was fueled by strong bullish signals, ETF inflows, and the market’s impressive resilience.
Market Resilience Amid Sell-Side Pressure
Despite significant sell-side pressure caused by Germany’s Bundeskriminalamt’s liquidation of over 48,000 BTC, the market has shown remarkable resilience and absorbed this influx. The exhaustion of sell-side pressure from both this sale and miners has paved the way for positive price action and recovery. In fact, miners are now back to profitability for the first time in a month, indicating a positive shift in market dynamics.
Positive ETF Inflows
ETF inflows have been on the rise, with nearly $1.2 billion recorded last week, marking a significant uptick in investor interest. This surge in inflows is attributed to the price of Bitcoin surpassing the average inflow cost basis of ETF holders, instilling newfound confidence in the market.
Orderflow Metrics and Accumulation
Orderflow metrics have also contributed to the bullish sentiment, with the spot Cumulative Volume Delta reflecting a shift towards net-buy-side activity for the first time since early March. Additionally, the decrease in BTC reserves held in exchange wallets suggests that large investors are accumulating assets and potentially setting the stage for a supply squeeze.
Short-Term Holder Dynamics
Short-term holder dynamics are also showing positive signs, with a rise in the cost basis for short-term holders and a move towards equilibrium in the Short-Term Holder Spent Output Profit Ratio (STH SOPR) metric. These indicators suggest a resurgence in buying interest and confidence among short-term holders, hinting at a possible end to capitulation in this cohort.
Economic Factors and Regulatory Advancements
In the broader economic landscape, US retail sales figures are showing a slowdown in inflation, positively impacting consumer spending. Despite challenges in the housing market, resilience in the manufacturing industry and regulatory advancements such as the approval of Spot Ethereum ETFs and new regulatory frameworks for stablecoins in Hong Kong and South Korea are marking significant developments.
For a more in-depth analysis of these trends and insights, we encourage you to explore the original report by Bitfinex Alpha. Stay tuned to Extreme Investor Network for the latest updates and exclusive analysis in the world of cryptocurrency and blockchain.