Bitcoin has fallen by 1.83% over the past week, dropping its market price below $97,000. Despite this loss, market sentiment remains very bullish for the premier cryptocurrency, with a 61% price increase through early October. However, Bitcoin's impressive rise to new points in the past few weeks has resulted in a potentially bearish market development.
Bitcoin sees price increase of 'only' $37,000 amid $100,000 charge
In a Quicktake post on CryptoQuant, an analyst with the username Grizzly shared some interesting insights into Bitcoin's realized price after its recent price spike. According to Grizzly, when Bitcoin rose from $60,000 to almost $100,000 in the past two months, the realized price only increased from $31,000 to $32,000 to $37,000, with both values increasing. The gap between the two countries is widening, indicating multiple influences.
For context, realized price means the average price at which all Bitcoins in circulation were purchased, effectively representing the total cost basis for all holders. This is often applied not only to identifying market cycles, but also to analyzing investor behavior.
An increase in realized prices is generally a positive development, indicating increased capital inflows as new investors are purchasing Bitcoin at higher price levels. Additionally, the increase in realized prices indicates that selling pressure from long-term holders is decreasing despite significant price increases, which is a strong sign of market confidence.
However, Mr. Grizzly believes that the widening gap between market prices and realized prices that we have traditionally seen is a sign of short-term overheating, with unsustainable price increases driven by speculation without underlying fundamentals. Explaining. However, the analyst also highlighted that historical data shows that Bitcoin is witnessing widening price differentials and sustained price increases similar to past bull seasons. This phenomenon can be attributed to the rapid price increases recorded during typical bull markets.
Therefore, the current widening gap between Bitcoin's realized price and market price may not impact Bitcoin's current bullish trajectory.
BTC records the largest exchange withdrawal in the past two years
In other news, the crypto community is currently experiencing the largest Bitcoin outflow from exchanges since December 2022. According to the team at CryptoOnChain, this development is a strong indication that BTC’s bullish rally has a lot of room to continue.
At the time of writing, the cryptocurrency market leader is valued at $96,468 after falling 0.08% over the past day. However, Bitcoin continues to make gains on longer time frames, as shown by its 38.22% rise over the past 30 days. With a market capitalization of $1.91 trillion, this leading cryptocurrency remains the largest digital asset accounting for 55.9% of the total cryptocurrency market.
