Bitcoin demand surges after months of lackluster activity
BitcoinDemand has picked up significantly after remaining quiet since May. This 5% increase follows last week’s apparent demand growth of approximately 177,000 BTC. Bitcoin’s (BTC) strong recovery shows that the market is heading in the right direction.
The latest data shows that Bitcoin has gained 11% in the past week, outperforming the index tracking the largest digital resources (up 9.6%). This highlights Bitcoin’s continued strength and high demand in the market.
Increased demand for Bitcoin could indicate more room for price gains. Analyst Moreno said that perceived demand for Bitcoin would need to surge by 490,000 to 550,000 BTC to reach a new all-time high. The current increase indicates that price increases are still possible.
According to the chart, Bitcoin prices rose to new record levels in 2020-2021 and 2024, following strong and growing demand. This means that the current apparent growth in demand could once again push Bitcoin to unprecedented heights.
Source: CryptoQuant
In the U.S., spot exchange-traded funds (ETFs) have helped push the price of Bitcoin higher. The ETF was a net buyer in the first quarter of 2024, bringing in nearly 9,000 Bitcoin per day. Due to the influx of capital, the price of Bitcoin has risen to unprecedented heights.
On Wednesday, U.S. Bitcoin ETFs saw $458.5 million in inflows, with BlackRock’s IBIT seeing the largest inflow at $393.4 million. This means that major institutional investors in Bitcoin are still investing heavily.
Big investors, also known as “Bitcoin whales,” continue to accumulate holdings. Excluding mining pools and exchanges, these powerful holders increased their overall holdings to 670,000 BTC. As far as Bitcoin’s price action is concerned, gains remain above its 365-day moving average.
This week, the funding rate for Bitcoin’s open interest (OI) weighted perpetual futures hit a multi-month high of over 0.0136%. This means new capital is entering the market, which can lead to greater price swings and greater volatility.
The future of Bitcoin is attracting the trust of multi-market bettors. This likelihood has increased by 45 percentage points over the past week, with them predicting a 64% chance that Bitcoin will reach $70,000 in October. Bettors also estimate a 75% chance of Bitcoin hitting a new all-time high in 2024, a significant increase compared to the previous week.
According to other crypto reports, the dog-themed asset continues to rise in value following Wednesday’s surge in Dogecoin (DOGE). Elon Musk’s $75 million donation to Trump-affiliated political action committee revealed. Cryptocurrencies gained traction as Musk continued to promote the Department of Government Efficiency (DOGE) on X.
