In the dynamic and electrifying world of cryptocurrency, the market has recently taken its investors on a thrilling ride, painted with significant spikes in value of several large-scale virtual assets. The spotlight has been stolen by Bitcoin, the preeminent cryptocurrency, whose value has impressively rallied from a meager $61,000 to a towering $67,000, a feat unseen in nearly a month.
This significant surge has lit the fuse for an explosive wave of speculation and analysis centered on Bitcoin. The leading blockchain forensics firm, CryptoQuant, has served as a miner’s lamp, shining light on the on-chain data insights surrounding the Bitcoin bull run and its potential trajectory.
To fully comprehend the recent meteoric rise in Bitcoin’s value, we must venture into the findings recently published by CryptoQuant. The firm’s data-driven insights have pointed distinctly to the catalysts and on-chain phenomena that triggered Bitcoin’s zooming rise over the $67,000 mark for the first time. As the firm reports, the recent surge in Bitcoin’s price was not an unaided climb, but had hitched a ride on an announcement of lower-than-predicted inflation figures here in the United States.
The revealing inflation data that took the crypto-market by storm was disclosed on Wednesday, May 15th. It indicated a mild 0.3% rise in the Consumer Price Index (CPI) for April, falling shy of the predicted 0.4% increase. This unexpected data suggested a potential decline in inflation in our economy, thereby rendering riskier assets such as Bitcoin potentially more appealing for investors.
CryptoQuant’s report further divulged that the Bitcoin market has experienced a decline in selling pressure off late, primarily due to short-term holders opting to sell at low or even negative profits. Simultaneously, Bitcoin holdings at the various over-the-counter (OTC) trading desks have maintained a stable front, indicating a reduction in the number of coins entering the marketplace.
Arguably the most sensational insight offered by CryptoQuant involved a unique on-chain signal that might have foreshadowed Bitcoin’s recent rally. According to the leading analytics firm, Bitcoin miners have been significantly undercompensated in recent weeks, a deviation that typically corresponds with a market low point.
Considering these recent successes, what could then serve as the ignition for a sustained Bitcoin rally? CryptoQuant’s analysts have pinpointed potential triggers within their data. A marked increase in demand from committed investors and large-scale investment factions could provide the required thrust needed to propel Bitcoin’s price into an even higher orbit.
However, CryptoQuant’s analysts caution the market, highlighting that despite the bullish indicators, the daily purchases of Bitcoin Exchange-Traded Funds (ETF) have shrunk to nearly zero. Stablecoin liquidity growth, too, appears to be on a slide downhill. They suggest a swift and significant stimulus might be required to jolt both metrics into life, aiding in a more robust and long-lasting Bitcoin rally.
At the time of this report’s draft, Bitcoin maintains its high-stranded position in the market, floating around the $67,000 mark, a steady 2.5% increase over the past 24 hours. As per data from CoinGecko, this headlining cryptocurrency has surged by a noteworthy 10% over the past week.
