Bitcoin [BTC] Feeling the heat of a rally again after narrowly breaking its $25k resistance level over the past 24 hours. At the time of writing, the crypto was trading at $24,750 on the back of a 0.75% daily increase. In fact, it was set to end the week on a positive note with a weekly gain of over 7.75%.
a new dawn?
The cryptocurrency has been showing bullish activity in recent days, something that has attracted investors of late. There are serious calls now among market skeptics that a fifth bull run could be on the cards soon. There are also some researchers who believe that Bitcoin’s run is the result of “Ethereum biting into the merge news”.
However, it is worth noting that bitcoin has seen its stock rise after the latest announcement from BlackRock.
What happened?
BlackRock, the $8.5 trillion asset management giant, has launched a spot bitcoin private trust for its US institutional clients.
“Despite the steep decline in the digital asset market, we are still seeing substantial interest from some institutional clients on how to use our technology and product capabilities to efficiently and cost-effectively access these assets,” the company said.
In his latest commentary, Lucas Outumuro, Head of Research at IntoTheBlock, shares his insights on the latest trends in Bitcoin. He claimed that large transactions have become far more common. Since the summer of 2020, the percentage share of large bitcoin transactions (over $100K) has been between 97% and 99.9%.
Nevertheless, throughout 2021, this figure will remain constant at 99%. It subsequently fell to around 98% during the bear market.
These large wallets are not only dominating transactions, but also blocking metrics. According to Outumuro, the largest bitcoin holdings are with long-term oriented entities.
Furthermore, about 60% of the supply of bitcoin has been held for more than 1 year. The record 24.3% has also been held for more than 5 years.
Another major development has been recorded among bitcoin investors.
According to glassnodeBitcoin’s percentage supply (7D MA) in gains has just reached a 3-month high of 62.73%. A rising profitability index has historically paved the way for the influx of STH on the network. This could prove to be a huge factor, especially if Bitcoin were to drive another bull run on the charts.
Sentiment recently indicated another bullish trend. according to this UpdateThroughout 2022, bitcoin and the S&P 500 were closely related.
“While they registered a decline in the first half of the year before the recovery began in June, recently, BTC has fallen behind, and historically, a short reliance is good for crypto long term.”
Bitcoin has recently started to diverge from the S&P 500, as shown below. Is this 5. may be the final push forth Bull run or is it just another optimistic metric for Maxis?
Despite the volatility in the prices of the digital asset, crypto-legendary Bobby Lee remains bullish on bitcoin. In an interview with Bloomberg, Lee said that both Bitcoin and Ethereum could return to their November 2021 ATH.
“If the bear market doesn’t take place, you can easily see Bitcoin and Ethereum revisiting their previous highs, especially with this upcoming upgrade for Ethereum. This is very important for the cryptocurrency ecosystem. Everyone is eagerly waiting for it. On the other hand, if there is indeed a bear market, I think it is a short term one to two year affair. And it is time for a big new super rally in the coming years. To set the stage.”