SNEAK PEEK
Bitcoin dips to $69,200 after hitting $70K, reflecting mixed market performance and profit-taking activities.
Over 50% of Bitcoin’s supply remains inactive, showcasing robust long-term conviction among investors.
Despite recent challenges, Bitcoin’s bullish sentiment persists, driven by expectations of new demand and ETF approvals.
Bitcoin (BTC) dropped to $69,052 early Tuesday following brief trading above the $70,000 mark late Monday. The fluctuation in Bitcoin prices occurred alongside mixed performance in major tokens and was correlated with movements in broader U.S. stock markets. This pattern reflects ongoing risky bets in the market.
Long-Term Holders Exhibit Strong Conviction
On-chain data revealed that over 50% of Bitcoin’s supply remains inactive, suggesting a robust long-term commitment to the asset. According to CryptoQuant, this inactivity indicates that many investors are holding their positions and expecting further price appreciation.
This analysis aligns with findings from the Bitfinex crypto exchange, which noted that the recent slump in Bitcoin prices since March was likely due to long-term holders selling off their assets. However, the trend appears to have stalled, with signs of renewed accumulation.
Bullish Sentiment Despite Market Challenges
The bullish sentiment surrounding Bitcoin persists despite recent negative news, including issues related to Mt. Gox and the DMM hack. QCP Capital highlighted this resilience, observing that Bitcoin rallied confidently above $69,000 in the Asian markets. The firm anticipates this bullishness will continue, driven by expectations of new demand from the forthcoming ETH spot ETF.
Additionally, there is a noticeable increase in speculative long positions in other major cryptocurrencies as investors anticipate further approvals of spot ETFs. This activity contributes to the overall positive market sentiment.
Mixed Performance Among Other Cryptocurrencies
While Bitcoin faced profit-taking, other major cryptocurrencies showed varied performances. Ether (ETH) and dogecoin (DOGE) experienced slight losses. In contrast, Cardano’s ADA and Solana’s SOL saw up to 3% gains.
This mixed performance across different tokens underscores the dynamic nature of the cryptocurrency market, influenced by broader market trends, investor sentiment, and regulatory developments.
The post Bitcoin Experiences Profit-Taking at $70K Amid Persistent Bullish Sentiment appeared first on Every News Bite is Essential for Investment.
