Markets Rally as Old Holders Are Met By New Money – Crypto News – Crypto News
Connect with us
Markets Rally as Old Holders Are Met By New Money Markets Rally as Old Holders Are Met By New Money

De-fi

Markets Rally as Old Holders Are Met By New Money – Crypto News

Published

1 year ago

on

Bitcoin is back above $71,000, while Ether has rallied above $3,600.

A wave of green is splashing over the crypto market as most tokens notch up green candles to kick off the week.

Bitcoin trades for $71,740, clocking a 3.3% gain in the past 24 hours. The most valuable cryptocurrency hasn’t seen this price level since late March when traders took profit after BTC topped its previous all-time high.

BTC Price

Ether has spiked 7% today and is now changing hands for $3,632. With a $436 billion market cap, the second largest crypto has not been able to break its previous all-time high yet, which stands at $4,878.

The crypto industry’s global market cap has surged 3.6% to $2.8 trillion.

The biggest winners for today include NEO, which surged 33% to $20.55; and famed memecoin DogWifHat, which spiked 13% to $4.13, corresponding to an eye-watering $4.1 billion market cap.

There are few losers today, and those that are down are nursing minor losses. Fresh off its airdrop, which took its market cap to $2.5 billion, Wormhole has lost 3.5%, trading for $0.98, with a market cap of $1.7 billion.

BTC Supply Distribution

According to Bitcoin analyst Dylan Leclair, supply distribution in the Bitcoin ecosystem has begun, with sales by old holders met with “an impressive wave of new capital inflows.”

Using Bitcoin’s realized market cap, which values every coin at the price it was last moved on-chain, a high positive rate of change is indicative of meaningful levels of inflow to meet profit taking from the incumbent “hodler” cohort, Leclair explained – with today’s ratings trending higher.

Leclair added that the current price action reminds him of 2020, just as the previous Bitcoin halving was taking place. With Bitcoin’s quadrennial halving around the corner and its history of price appreciation in the months that follow, it seems investors are allocating increasing amounts of capital to the asset.

DeFi AlphaPremium Content

Start for free

That idea echoes Ki Young Ju’s view. The founder and CEO of trading platform CryptoQuant pointed out today on X that onchain indicators are signalling buy, with miners holding and no significant exchange inflows from Bitcoin whales.

“Same vibe as the previous Bitcoin halving,” Young wrote.

ETFs Continue To Grow

The stars of Bitcoin’s recent rally are the spot Bitcoin ETFs, which have accumulated more than 4% of the network’s total circulating supply, worth $59 billion.

BlackRock, which stands in top place for BTC held on behalf of its customers, announced last week that it was adding several big-name TradFi players to its ETF offerings, including Citigroup and Goldman Sachs.

Bloomberg analyst Eric Balchunas pointed to the fact that BlackRock’s IBIT and Fidelity’s FBTC have taken in cash for 59 straight days, with both landing firmly in the top 20 ETFs of all time. JEPI US Equity leads the ranking with 160 straight days of inflows.

Equities and Gold at ATHs

The uptrend in financial assets is being felt across the spectrum.

Equities on the Nasdaq100 are at all-time highs, with the index topping $18,147 and registering five straight green months. Gold also hit a record high last week, reaching $2,361 on April 7.

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending