CryptoQuant reveals the rationale behind Bitcoin’s behavior
The CryptoQuant platform analyst has shared their perspective on the resurgence of Bitcoin’s price, which has climbed back above $70,000 following a period of correction. According to the expert, there are several factors behind this recovery. Firstly, a significant amount of investors’ profits, totaling $2.7 billion, were realized in the crypto market, which helped to alleviate selling pressure as short-term bond holders stopped incurring losses from the price correction.
Another factor contributing to the bounce-back of the leading cryptocurrency is the release of several billion stablecoins, specifically USDT, last week. Additionally, a noteworthy trend that has aided in Bitcoin’s recovery is the substantial influx of BTC into savings addresses, resulting in all-time high reserves.
Today, the price of Bitcoin surged to $72,000, coinciding with the Fear and Greed Index reaching 76 points, indicating a state of “extreme greed” among BTC traders. Numerous experts attribute Bitcoin’s upward movement to two main factors: the upcoming halving in April and the sustained interest in spot Bitcoin ETFs.
The enthusiasm surrounding cryptocurrency investments is also evident in the influx of capital into related products. Between March 30 and April 5, inflows amounted to $646 million. Since the beginning of the year, total inflows have reached a remarkable $13.8 billion.
Source: CoinMarketCap
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