The cryptocurrency market has received another boost as Bitcoin’s value has increased by around 4% in the last one day to trade above $70,000. A recent X post by the well-known analytical platform CryptoQuant also pointed out this remarkable increase, stating that the primary reason for such demand is the exchange-traded funds (ETFs), which have experienced net inflows of roughly $1. 2 billion during the past week and it is still rising.
According to a recent report, this upward momentum has significantly enhanced the viability for short-term holders of Bitcoin. Data from CryptoQuant shows that the recent price rise has brought back a positive profit margin, which means that there are low risks of a flippening and a shift from a bull run to a bear run. This stability is necessary to maintain the confidence of the market and to continue to invest in the Bitcoin.
However, as for the further development of events, CryptoQuant analyst believe that the BTC price may remain in the range of $60,000 to $70,000 for some time. This cautious outlook is due to the absence of big macroeconomic stimuli that would help to pour large amounts of capital in the market. In the past, similar to the current situation, such consolidations have been seen in different cycles before moving to the phase of mania.
Positive Bitcoin Sentiment Amid Economic Stability
The analysis shows that the current sentiment is already positive due to the recent inflation data from the United States; however, there are no macroeconomic drivers that could put Bitcoin in another significant rally. This consolidation phase may be useful in a way that it may help the market to mature and strengthen so that it can expand in the future.
The economic calendar for this week seems to be quite light, which CryptoQuant believes is good in the current circumstances. The relatively stable economic environment, and encouraging inflation rates in the United States further enhance the upbeat mood among investors. However, the analysts have noted that a shift to a risk-off mode, which could be catalyzed by unfavorable economic reports, may cause a pullback to $60,000.
The analyst keeps a bearish outlook with a focus on sideways movement, although, there are some early indications of demand. Such signs point to the fact that the next round of buying could be closer than most people expect, thus the next rally may be closer than we think. The platform encourages investors to be on the lookout and pay attention to what is happening in the market.
Therefore, the interplay of the ETF demand, short-term holder profitability, and macroeconomic conditions will be the key factors that will determine the movement of Bitcoin as it operates under these conditions. The overall outlook remains bullish with a stable economy and the strong ETF inflows and the prospects for further gains are possible.