Bitcoin is unstoppable. It has been generating quite a buzz as it created history by rallying above $60K. With the fresh move up, the cryptocurrency climbed to a market cap of $1.38 trillion and was currently sitting at dominance of 62%. It was particularly interesting because it marked the anniversary of the Black Thursday crash when the price of the crypto-asset fell to $3,800 on the 12th of March.
Exactly one year, 39.95% of the addresses in the money, according to ITB’s chart. Fast forward, to today, 100% of the addresses are in the money.
After shattering the record high, Bitcoin was up by more than 21% over the last week and was currently trading above $61,000. With the latest bullish price action, the cryptocurrency has now entered price discovery. Despite the mad rush from the buyers, some metrics depict that the token has not yet reached its peak.
As noted by Rafael Schultze-Kraft, the on-chain data analyst and CTO of Glassnode, BTC’s NUPL [Net Unrealized Profit/Loss] remained to be in the stable zone even as the price surged. He explained that a stable NUPL depicted that the coin’s market cap was not observed to increase at an excessively faster rate than profit taking and new capital inflows.
“Not the top, we haven’t even crossed .75 into the greed/euphoria zone.”
This was indicative of a healthy ecosystem.
Bitcoin’s Market Dynamics
Bitcoin is at the receiving end of more adoption than ever before. Hence, several fundamentals look great for its future. With respect to user profitability and HODLing sentiment, as well, Bitcoin’s buying pressure has fueled massive outflows from crypto exchanges.
The price rally comes at the backdrop of continuous decline in BTC exchange supply as depicted by crypto-analytic platform, Santiment’s chart below. To top that, the Bitcoin dormant tokens are also on the move as the whales are booking profits while novice and young retail investors are in full-on accumulation mode.
Bitcoin’s price tumbled causing a market-wide ripple effect back in Feb. For the past several weeks, it was not just the cryptocurrency industry that witnessed a slew of correction and sideways trading, Stocks paled in the market too before rising again in the last seven days. President Joe Biden signing the astonishing $1.9 trillion stimulus program into law has further strengthened Bitcoin’s case.
As it continued to carve out fresh records, several notable personalities are eyeing Bitcoin hitting $100,000 by year-end. One such Bitcoin bull is Anthony Scaramucci, the founder of investment firm SkyBridge Capital while speaking with business network’s Squawk Box.
It can be safely stated that the market would now expect volatility. However, a landing of $100k levels for the third quarter might actually come true. Firstly, because there is no promising resistance above the current level. Secondly, institutions are in no mood to stop pouring capita in to the BTC market.