Why Did Bitcoin Just Jump 10%? Blockchain Firm Weighs In
May 18 2024 - 9:00AM
NEWSBTC
The cryptocurrency market has been on a hot streak in the past few
days, with several large-cap assets posting significant gains in
the past week. Most notably, the Bitcoin price bounced back from
around $61,000 to above $67,000 for the first time in nearly a
month. As expected, this latest price movement has sparked a lot of
speculation and discussion around the premier cryptocurrency.
Popular blockchain analytics firm CryptoQuant has shared on-chain
insights into the recent Bitcoin price rally and its future
trajectory. How Did Bitcoin Price Reach $67,000? In a recent
report, CryptoQuant revealed the catalyst and on-chain
manifestations behind BTC’s latest rally to above $67,000.
According to the analytics firm, the price of Bitcoin rode to its
new highs on the back of the news of lower-than-expected inflation
in the United States. Related Reading: Is Dogecoin About to Take
Off? Indicators Suggest Upward Momentum Ahead The inflation data
released on Wednesday, May 15 showed that the Consumer Price Index
(CPI) rose by 0.3% in April – lower than the expected 0.4%. This
revelation suggested that inflation might be on a downward slope in
the US, making risky assets like Bitcoin more attractive. In its
report, CryptoQuant revealed that there has been a decreased
selling pressure in the BTC market, as short-term holders are
selling at low or negative profits. Meanwhile, Bitcoin balances at
over-the-counter (OTC) desks have steadied, implying that fewer
coins are entering the open market. What’s more, the analytics
platform highlighted a particular on-chain signal that might have
predicted the recent Bitcoin price rally. According to CryptoQuant,
BTC miners have been extremely underpaid over the past few weeks,
which often correlates with price bottoms. The Catalysts For
Sustained BTC Rally? CryptoQuant, in its report, identified
potential catalysts for a continued rally for the Bitcoin price.
According to the on-chain data company, demand from permanent
holders and largest investors is on the rise but it needs to climb
rapidly to push the price of BTC even higher. Related Reading:
Solana Takes The Crown: CoinGecko Ranks It The Best, Leaving
Ethereum Behind In Key Metric Furthermore, the latest data shows
that Bitcoin ETF (exchange-traded funds) purchases have dwindled to
nearly zero daily, while stablecoin liquidity growth is also on a
decline. CryptoQuant noted that these two metrics need a jolt,
which might be critical for a sustained Bitcoin rally. As of this
writing, the Bitcoin price continues to hover around $67,000,
reflecting a 2.5% increase in the past 24 hours. According to
CoinGecko data, the premier cryptocurrency is up by a significant
10% in the past week. Featured image from iStock, chart from
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