Even as Bitcoin BTC/USD has rebounded significantly, nearing the $70,000 mark, key indicators are pointing towards continued growth in the cryptocurrency market.
What Happened: The price of Bitcoin has returned above $63,500, which is significantly above the average realized price for short-term investors, according to CryptoQuant. This suggests renewed confidence among investors and could signal a bullish trend in the coming weeks.
One of the key factors contributing to this upswing is the increased market capitalization of stablecoins Tether USDT/USD and Circle USDC/USD.
“Changes in their capitalization directly impact the price of Bitcoin,” CryptoQuant pointed out, highlighting the intricate relationship between stablecoins and the broader crypto market.
Another positive indicator is the current state of Bitcoin mining.
“Miners are no longer underpaid; they are now fairly paid, meaning that Bitcoin mining and selling allow them to break even at the current price,” the analysis notes.
This equilibrium in mining profitability often correlates with market stability and potential growth.
Institutional interest has also played a significant role in Bitcoin’s recent performance.
“There have been large inflows into Bitcoin Spot ETF funds in the last two weeks,” according to the report.
This observation is supported by recent data showing that Bitcoin spot ETFs received an inflow of $535 million last week alone, with BlackRock‘s IBIT ETF leading the charge with a net inflow of $758 million.
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The much-anticipated Mt. Gox repayments have begun, with creditors receiving funds through exchanges Bitstamp and Kraken.
Contrary to earlier concerns, the analysis notes, “There is no panic in the market, and the price remains stable. I have been writing on my X profile for many weeks that Mt. Gox would not impact the market from a supply perspective, but only as a psychological factor.”
Adding to the positive sentiment is the growing interest in Ethereum BTC/USD spot ETFs and recent high-profile endorsements.
“Positive sentiment in the US market has returned due to the anticipation of the introduction of Spot ETFs for Ethereum and a speech by former US President Donald Trump at the Bitcoin conference in Nashville over the weekend,” the analyst stated.
However, it’s worth noting that while Bitcoin ETFs are seeing significant inflows, Ethereum spot ETFs experienced a total net outflow of $163 million on July 26, with Grayscale‘s ETHE ETF seeing a single-day outflow of $356 million.
What’s Next: As the crypto market continues to evolve, all eyes will be on the upcoming Benzinga’s Future of Digital Assets event on Nov. 19, where industry leaders and experts are expected to provide further insights into these trends and their implications for the future of digital assets.
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