As a seasoned crypto investor with a knack for reading market trends and a flair for spotting patterns, I find this analysis intriguing. The reversal in the Bitcoin US to The Rest Reserve Ratio suggests a potential shift in demand dynamics that could signal a new bull run.
A analyst believes that now might be the right moment to prepare for another Bitcoin price surge, as suggested by the emerging trend in this specific blockchain statistic.
Bitcoin US To The Rest Reserve Ratio Has Seen A Reversal Recently
In a CryptoQuant Quicktake article, an analyst delved into the latest patterns concerning the Cumulative Reserve Ratio (CRR) of Bitcoin in relation to US-based centralized platforms versus their global counterparts. Essentially, this ratio provides insight into the proportion between the accumulated Bitcoin reserves held by US-centric platforms (including exchanges, banks, and funds) compared to those worldwide.
As this metric increases, it indicates that assets are shifting from offshore to American platforms, which might signal increased interest from U.S. investors. Conversely, a decrease in the metric could mean that foreign platforms currently have more demand for Bitcoin, potentially due to a decline in the dominance of American exchanges compared to their overseas counterparts.
Currently, let’s take a look at this graph which illustrates the pattern of the 100-day Exponential Moving Average (EMA) for the exchange rate between Bitcoin USD and The Reserve Ratio over the last 1.5 years.
The graph you see shows that the 100-day Exponential Moving Average (EMA) of Bitcoin’s U.S. to Rest of the World Reserve Ratio had been decreasing earlier in the year. However, in recent months, it has leveled off and even started to increase, suggesting a shift in Bitcoin transfers from global platforms to those based in the U.S. The quant has pointed out on the chart where this trend was last observed.
It seems that the previous reversal in the metric took place around the last quarter of 2023, coinciding with a Bitcoin rally that pushed the asset to a record high. The most significant surge in this indicator happened during the first quarter of 2024. This increase was primarily driven by the launch of spot exchange-traded funds (ETFs) in the US, which soon became popular among investors.
Looking at the graph, we can see that following the all-time high (ATH) of the price, there was a peak in the metric which then showed signs of a change in direction. Consequently, the interest in spot ETFs started to decrease.
As a crypto investor, I’ve observed this year that Bitcoin’s steady consolidation can be attributed to a decrease in the reserve of US-based platforms. Interestingly, this indicator has recently shown signs of reversal. If history repeats itself and previous patterns hold true, we might witness a resurgence of bullish momentum for Bitcoin.
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2024-10-29 03:04