Munzir Hakimi26
Table of Contents
Market insights
Bitcoin is experiencing a notable increase in capital turnover as new investors enter the market, driven by rising prices. Recent analysis indicates that this surge in interest is linked to Bitcoin’s price reaching multi-month highs, prompting speculation among short-term holders.
Capital Turnover Surge
- Increased Speculation: The latest data shows that Bitcoin’s “hot supply” has doubled over five weeks, indicating a significant influx of speculative capital.
- Market Sentiment shift: As of late March, hot capital was at its lowest point but has since surged by $21.5 billion to nearly $40 billion.
- Short-Term Holder Activity: This rise reflects renewed activity from short-term holders who are now engaging wiht the market.
Bull Market Indicators
- Profitability Metrics Rising: Short-term investors are seeing profits as Bitcoin hovers around $95,000.
- Early Signs of FOMO: While there are indications of early fear-of-missing-out (FOMO) among investors, overall network participation remains subdued.
- Active Addresses Still Low: Despite increased transfer volumes and fees, daily active addresses have not yet returned to pre-bull market levels.
Final Thoughts
The current landscape suggests a potential shift towards a bull market for Bitcoin. However, caution is advised as signs indicate that full organic engagement within the network is still developing.
Reference
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- Cointelegraph – Bitcoin ‘hot supply’ nears $40B as new investors flood in at $95K
- Glassnode – Market Pulse Analysis
