Bitcoin Fuels Up For The Long Ride: Will Prices Reach New Highs?
• Bitcoin (BTC) has recently slowed, but some indicators suggest that it may be on the verge of a significant upside as investors return to the market.
• Exchange Traded Funds (ETFs) have seen an increase in their holdings, and the number of addresses holding 0.1+ coins has hit an all-time high.
• Market sentiment has changed since the beginning of 2023, as retail and wealthy investors fuel BTC’s rally.
Bitcoin Price Action Slows But Market Sentiment Rises
Bitcoin (BTC) has recently experienced a slowdown in price action and relied on previously recovered support areas to continue its uptrend since the beginning of the year. Despite this, there is increasing expectation that BTC will break into new levels and reach yearly highs due to changes in market sentiment.
Exchange Traded Funds Increase Holdings
According to a report from ByteTree, Exchange Traded Funds (ETFs) have seen a sharp increase in their holdings with three different ETFs adding over 1,465 Bitcoins this month. This indicates that investor interest is returning to the cryptocurrency market despite crises like bankruptcy cases and feuds between exchanges.
Retail Investors Fuel Bitcoin Rally
The number of addresses holding Bitcoin has grown significantly over the past month with 4,217,261 addresses holding 0.1+ coins – an all-time high according to Glassnode data. This shows that both retail and wealthy investors are contributing to BTC’s rally by accumulating large amounts of coins before taking off again towards reclaiming its previous highs.
Awaiting A Bull Run?
The recent rise in market sentiment suggests that after months of accumulation and sideways price action, Bitcoin may be ready for another bull run fueled by optimism amongst investors who are betting big on cryptocurrencies once more.
Conclusion
Bitcoin’s recent slowdown in price action could indicate that it is gearing up for another bull run as investor confidence continues to build across the crypto industry thanks to increased holdings by ETFs and increased activity from both retail and wealthy investors accumulating large amounts of coins before taking off again towards reclaiming its previous highs.