Pro-Ripple Lawyer’s Insights and BlackRock’s ETF Surge Drive Bitcoin’s Price Rally and Stability.
Taking to Twitter, Deaton shared his thoughts on Bitcoin’s price movement and the behavior of investors. He pointed out that approximately 80% of Bitcoin remains dormant, suggesting that holders are reluctant to sell their assets. He expressed keen interest in observing whether this trend continues as Bitcoin approaches the $50,000 and $75,000 price levels.
Deaton’s observations align with the recent comments made by renowned crypto analyst Will Clemente, who highlighted the resilience of Bitcoin investors during price downturns. Clemente referenced a statement by Stanley Druckenmiller, noting that 86% of Bitcoin holders who acquired the cryptocurrency at $17,000 did not sell when prices plummeted to nearly $3,000.
Adding to the discussion, Clemente further emphasized that despite Bitcoin’s recent recovery, the amount of supply that has remained inactive for at least a year continues to reach new record highs every day. This indicates that a growing number of investors are holding onto their Bitcoin rather than selling, further reinforcing Deaton’s observations.
Ripple Effect: BlackRock-Led Bitcoin ETF Applications Ignite Price Surge, Establishing Stable Equilibrium Above $26,000
Over the course of the previous week, there has been a notable increase in spot Bitcoin ETF applications, spearheaded by BlackRock, the largest asset management company globally. This surge of interest has driven Bitcoin’s value to soar from $25,000 to well above $31,000, marking its highest point in the year. Analyzing the blockchain data, Glassnode, an on-chain analytics firm, has identified a steady equilibrium forming around the $26,000 mark prior to the recent upswing, indicating a shift in investor sentiment away from the pessimistic outlook that dominated the market in 2022.
According to Glassnode’s weekly analysis, this change in psychology indicates that investors now perceive breakeven levels as an opportunity to accumulate Bitcoin rather than liquidate their holdings. Despite recording slight losses at the time of writing, Bitcoin remains above the $30,000 mark, with a marginal increase in trading value over the past 24 hours, currently sitting at $30,226.
The optimistic sentiments expressed by John Deaton, coupled with the resilience of Bitcoin holders and the growing interest in spot Bitcoin ETFs, suggest a potential upward trajectory for the cryptocurrency. As the market dynamics continue to evolve, all eyes will be on Bitcoin’s price movements and the behavior of investors in the coming weeks.