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3 reasons why key Bitcoin metrics are rising sharply today
Bitcoin (BTC) price retested the $67,252 resistance after a bearish rally over the past 24 hours that sent the price tumbling before support at the daily low of $65,088. however, the Bitcoin the bullish momentum was short-lived after resistance proved too stiff to overcome.
Increased dominance of Bitcoin
Bitcoin Dominance, an index that shows how much of the entire cryptocurrency market capitalization is accounted for by Bitcoin, increased 0.91% to 54.34%. This shows that more capital is pumped into Bitcoin than into other altcoins.
Bitcoin may be seen by investors as a safer asset in the current market environment, which can be attributed to higher expectations or, conversely, a hedge against fluctuations.
The Crypto Fear & Greed Index is currently at 71, which indicates that there is a lot of greed in the market. Often such levels have been seen before market corrections, when overly bullish investors can be brought back down to earth. However, the increase in Bitcoin’s share indicates that investors have a preference for the leading cryptocurrency, which could be a deliberate change in strategy.
High liquidity and market volume
Over the past day, Bitcoin volume held on exchanges decreased by 0.06% to 1.81 million BTC. This decrease means that investors are moving Bitcoin from exchange wallets to personal wallets, thus showing an intention to hold and not sell.
Futures volume also increased exponentially with an increase of 149.73% to $141.79 billion. This spike could indicate that trading activity and interest in Bitcoin is increasing, which could mean more volatility soon.
Source: Coinglass
Additionally, 24-hour settlement data reveals an increase of $284.48 million, suggesting that recent price fluctuations have forced many margin traders to liquidate their positions in the futures market. This indicates a volatile trading environment, usually associated with price fluctuations.
Derivatives market and financing rates
The derivatives market is more active, with total options open interest and CME BTC Futures open interest grows marginally. These metrics suggest that traders are using Bitcoin for speculative purposes and to hedge their positions to minimize risk.
Funding rates in Binance, Bybit and OKX have slight differences. Funding rates are positive, meaning long positions pay short ones, meaning there is bullish sentiment among traders.
According to market analysts, Bitcoin’s 30-day realized volatility is at its lowest levels in history. However, the market has not had the drivers that could lead to significant changes and remains rather stagnant.
According to Paradigm, the cryptocurrency market is “slowing down” because there are no new and significant innovations. However, Bob Loukas, a trader and market analyst, pointed out that Bitcoin is in the descending part of its daily cycle and could return to the $60,000 range before a strong uptrend takes over.
Bitcoin miners and network health
Bitcoin miners they play a crucial role in the overall health and stability of the network. Current statistics suggest that miner activity has continued to be strong, which is beneficial to the network’s defenses and transactions. Miner revenue, made up of block rewards and transaction fees, remains useful for meeting operating costs and encouraging greater participation in the network.
Additionally, the hash rate, which is a measure of the computational power of Bitcoin mining, remained stable or increased slightly. This shows that miners have confidence in the long-term profitability of Bitcoin mining, which is positive for the market.
Source: CoinMarketCap
At press time, the Bitcoin price it was trading at $66,608, up 0.25% from its intraday low. During this rally, BTC’s market capitalization and 24-hour trading volume increased by 0.21% and 148%, respectively, reaching $1,311,118,412,481 and $30,245,768,049.
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