As a seasoned researcher with over two decades of experience in financial markets, I have witnessed numerous market cycles and trends, from the dot-com bubble to the global financial crisis, and now the digital asset revolution. The recent surge in Bitcoin’s price and demand metrics has piqued my interest, as it reminds me of the exhilarating ride during the 2017 bull run.
Based on the latest trends in Bitcoin‘s price and popularity indicators, there seems to be a growing possibility of increased market enthusiasm returning. This could potentially result in another peak record value for Bitcoin.
Currently, Bitcoin has made a notable comeback, surpassing the $70,000 trading point again after facing persistent obstacles just shy of this price. This upward trend is a result of a 5% growth over the last day, placing Bitcoin at approximately $71,933 at this moment.
As a researcher, I’ve noticed that one significant factor driving this rally is an increased demand, evident in the movements of stablecoins. This metric is frequently employed to gauge market sentiment and potential Bitcoin investment. BinhDang, an analyst at CryptoQuant, emphasized this point in his latest post on the CryptoQuant QuickTake Platform.
Stablecoin Supply Ratio Oscillator Reflects Demand Surge
BinhDang pointed out that the Stablecoin Supply Ratio Oscillator (SSRO) now resembles its past readings from November 2022, which were noticeably low periods for Bitcoin.
The analyst noted:
Over the past three months of Q3 2024, the 90-day and 200-day oscillators have shown minima comparable to those seen following Bitcoin’s bottom in November 2022.
Significantly, the SSRO tool, which measures the comparison of Bitcoin’s total market value against major stablecoins such as USDT, USDC, BUSD, and others, serves as a gauge for monitoring the demand for Bitcoin in relation to the supply of these stablecoins.
The oscillator tracks the movement of stablecoins (often utilized for Bitcoin transactions) towards Bitcoin, indicating increased interest in buying.
When the oscillator displays lower readings, like what occurred during Bitcoin’s dip in November 2022, this suggests that there is a higher probability of stablecoins being exchanged for Bitcoin, thereby boosting its demand.
The development of this trend led Bitcoin to surpass the $70,000 mark, fueling optimism among investors and sparking discussions about possible future record-breaking prices.
New Bitcoin ATH On The Horizon?
As per BinhDang’s analysis, Bitcoin (BTC) may persist in rising if the demand remains strong and harmonizes with positive macroeconomic indicators or significant election-related news.
The SSRO signifies that the typical quarterly dataset (90 days) experiences substantial demands, with values exceeding the positive 2-point threshold. If demand persists and the updates and news in early November present some advantageous macroeconomic and election data, it’s plausible that we may see a shift towards and surpassing the positive 3-points.
The analyst points out that surpassing the SSRO’s favorable three-point threshold has historically occurred during robust uptrends, for example, in January 2023, October 2023, and February 2024.
Over the recent days, Bitcoin’s price has been steadily rising, reaching close to $72,000 today. Notably, its daily trading volume has also been following a similar pattern.
Over the past seven days, data from CoinGecko indicates a significant increase in Bitcoin’s daily trading volume. Last Tuesday, it was around $35 billion, but it has since peaked at approximately $51.6 billion.
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2024-10-30 07:35