The crypto market is in turmoil with sensational news: 95% of Bitcoin addresses are now profitable. This exceptional situation has created extremely positive sentiment in the market, but it also raises questions about the sustainability of this bullish momentum.
Bitcoin: Historic Bullish Momentum!
Historically, when the majority of Bitcoin addresses are in profit, this has often been a sign of strong bullish momentum. Investors see their portfolios grow, which builds confidence and attracts new capital to the market.
There are currently more than 51 million Bitcoin addresses in profit, having acquired their assets for less than $67,300. This situation reflects growing acceptance and widespread optimism among investors.
Risks of overheating
However, this euphoria is not without risks. Such a level of profitability may also indicate an overextension of the Bitcoin market. When too many investors are in profit, the market can become vulnerable to sudden corrections.
Liquidations of short positions have already led to rapid price movements affecting nearly 44,000 traders in just 24 hours. These liquidations can create a feedback loop where prices rise quickly, but they can also fall just as quickly.
Factors contributing to Bitcoin price growth
Several factors contributed to this increase in BTC prices. Liquidations of short positions played a key role, but the inflow of funds into Bitcoin exchange-traded funds (ETFs) in the United States was also significant. In one week, these ETFs saw inflows totaling approximately $555.9 million. This influx reflects not only growing institutional interest, but also broader adoption of cryptocurrencies in the traditional financial landscape.
In short, current indicators show strong upside momentum, but investors should remain cautious. Careful analysis of market movements and underlying factors is essential to manage this period of increased volatility. The crypto market is known for its rapid swings and only time will tell if this Bitcoin uptrend will continue or if a correction is on its way.
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The world is evolving and adaptation is the best weapon to survive in this wavy universe. Essentially a crypto community manager, I am interested in anything directly or indirectly related to blockchain and its derivatives. To share my experiences and raise awareness of a field that fascinates me, there is nothing better than writing articles that are both informative and relaxing.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.