Bitcoin (BTC) maintained its streak of gains and even surpassed $97,000. Despite a slight pullback, the price appreciated by 0.8% this Friday (02) and is quoted at $96,889.
It is the second consecutive day that the price of Bitcoin records a rise, bringing May returns to 3.2%. But, unlike BTC, the performance of other Top 10 cryptocurrencies was more expressive. Dogecoin (DOGE), for example, had the largest increase of the day among the 10 largest cryptos, rising 1.2%, while Solana (SOL) fell 1.1%.
In the Top 100, IMX rose 11.8% and had the highest increase of the day, while the artificial intelligence token FET fell 8%. Besides the appreciation and demand for Bitcoin, mining data also indicate that the bottom of the current cycle has already been reached.
Biggest rises and falls of the Top 100. Preparation: CriptoFácil. Data: CoinGecko.
Read also: Solana Forecast: what to expect in May?
Mining metrics signal Bitcoin bottom
Beyond price action, Bitcoin maximalist Robert Breedlove sees a deeper story unfolding. The host of the podcast What is Money? sees signs in the Bitcoin mining economy, long-term behavior, and global liquidity trends.
According to Breedlove, BTC may be on the verge of a major rally, with key indicators showing this. One of them is the average production cost of mining, which, according to Breedlove, has historically served as a reliable market bottom indicator.
In this regard, Breedlove shows that the average equilibrium cost of mining has often coincided with major cycle bottoms since 2016. This cost indicates whether BTC is trading above or below its production value.
This factor often expelled unprofitable miners, reducing supply. Eventually, market recovery marks the beginning of post-halving bull rallies.
Average cost of miners. Source: X/Blockware.
Another optimistic sign comes from long-term Bitcoin holders. These are investors who refuse to sell despite volatility and short-term drops. Breedlove noted that, in the last 30 days, these holders accumulated an additional 150,000 BTC, creating the perfect condition for a supply shock and an eventual price increase.
Liquidity could drive the BTC boom
Further supporting his optimistic outlook is a macroeconomic scenario that is becoming quite favorable for BTC. The high correlation of the cryptocurrency with the dollar and the global liquidity of fiat currencies, a point often highlighted by former BitMEX CEO Arthur Hayes, could catalyze new bull cycles.
With central banks easing controls and the increase in global liquidity, the host of “What is Money” expects more capital to flow into risk assets, including cryptocurrencies. This happened in 2020 and 2021 and could repeat in 2025.
According to Breedlove, the rise of ETFs, institutional custody solutions, and BTC-backed financial products has only amplified this effect, facilitating the flow of new money into cryptocurrencies.
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“Bitcoin is highly correlated with fiat liquidity – and this is becoming increasingly common as ETFs, Bitcoin Treasury Companies, and Convertible Bonds (TCBs) facilitate new liquidity access to the Bitcoin market,” said Breedlove.