The cryptocurrency market has been on a heated streak over the past few days, with several large-cap assets posting significant gains in the past week. Most importantly, Bitcoin’s price rebounded from around $61,000 to over $67,000 for the first time in almost a month.
As expected, this latest price movement has sparked a lot of speculation and discussion about the premier cryptocurrency. Popular blockchain analytics firm CryptoQuant has shared insights on Bitcoin’s recent price surge and its future trajectory.
How did the Bitcoin price reach $67,000?
In recent report, CryptoQuant revealed the catalyst and on-chain manifestations behind BTC’s recent surge to over $67,000. Bitcoin’s price has hit novel highs following news of lower-than-expected inflation in the United States, according to an analytics firm.
Inflation data released on Wednesday, May 15 showed that the Consumer Price Index (CPI) increased by 0.3% in April, less than the expected 0.4%. This finding suggests that U.S. inflation may be falling, making risky assets like Bitcoin more attractive.
🧵 #Bitcointhe price increased from 60 thousand dollars to approximately 66 thousand dollars, due to lower than expected inflation in the US and reduced sales pressure.
Let’s look at the details ⬇️
— CryptoQuant.com (@cryptoquant_com) May 17, 2024
In its report, CryptoQuant revealed that selling pressure in the BTC market has decreased as short-term holders are selling with low or negative profits. Meanwhile, Bitcoin balances at over-the-counter (OTC) outlets have stabilized, meaning fewer coins are hitting the open market.
Moreover, the analytics platform highlighted a specific on-chain signal that could have predicted Bitcoin’s recent price surge. According to CryptoQuant, BTC miners have been paid extremely low over the past few weeks, which often correlates with rock-bottom prices.
Catalysts for BTC’s sustainable growth?
In its report, CryptoQuant identified potential catalysts for further growth in the price of Bitcoin. According to an on-chain data firm, demand from regular holders and largest investors is growing, but must grow rapidly for BTC’s price to rise even higher.
Moreover, the latest data shows that Bitcoin ETF (exchange-traded funds) purchases have dropped to almost zero on a daily basis, while stablecoin liquidity growth is also failing. CryptoQuant noted that these two metrics require a shake-up that could be crucial for Bitcoin’s sustained growth.
At the time of writing, Bitcoin’s price is still hovering around $67,000, reflecting a 2.5% boost in the last 24 hours. According to CoinGecko data, the most significant cryptocurrency increased by a significant 10% last week.
Featured image from iStock, chart from TradingView
