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According to CryptoQuant CEO Ki Young JuInstitutional investors have invested a staggering $86 billion into the Bitcoin market over the past six months, demonstrating the growing acceptance of cryptocurrencies among the general public.
This indication, according to the founder of CryptoQuant, shows that this current cycle may differ from previous ones.
Bitcoin, the first and most popular cryptocurrency, has seen its value increase significantly, up to 151% per year.
The Bitcoin boom marks a significant rebound from 2022, when values collapsed. The outlook improved significantly in 2023 and by March 14, 2024, Bitcoin had reached an all-time high of $73,737. The approval of proprietary Bitcoin exchange-traded funds (ETFs) in the United States has been a major driver of Bitcoin prices this year.
Accumulation by whales and institutional investors continues: according to Ali, a cryptocurrency analyst, Bitcoin whales have purchased more than 100,000 BTC over the past week, worth $7 billion.
BTC Price Action
The Bitcoin market has taken a breather after its powerful uptrend over the past two weeks, although it is now consolidating. Bitcoin plunged as low as $60,770 before recovering to $70,000. According to Glass knotthis price development is extremely similar to the last 2018-2021 cycle.
The overall Bitcoin market bears some similarities to previous ATH surges, particularly distribution pressure from the long-term holder cohort.
Several on-chain indicators indicated an increase in profit-taking activity, with over $2.6 billion in profits taken as the market approached resistance.
Metrics such as MVRV and AVIV ratio represented a +1 standard deviation from their long-term average. Past cases have always been points of interest where the market encounters resistance and some investors begin to withdraw profits and tokens.
At the time of writing, BTC had fallen 0.5% over the past 24 hours to $70,261, down 5% from its recent all-time high.