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Key Metrics Indicate Bitcoin's Newfound Momentum Could Sustain: What You Need To Know

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Key Metrics Indicate Bitcoin's Newfound Momentum Could Sustain: What You Need To Know

Bitcoin (BTC) has once again regained its upwards momentum and was trading 8.34% higher at $36,679.38 at press time.

The second-largest cryptocurrency by market cap Ethereum (ETH) touched its all-time high on Tuesday evening and was trading 12.01% higher at $1,549.12. Various metrics point to Bitcoin’s new upwards movement being sustainable.

Robust Demand: Demand for the apex cryptocurrency is surging even as only 26,000 BTC have been mined so far this year. Grayscale Investment Trust acquired 40,000 BTC in the same period, according to blockchain intelligence provider Glassnode. The Grayscale Bitcoin Trust (OTC: GBTC) closed 8.39% at $36.80 on Friday. 

Coins Moving From Exchanges: The amount of BTC held across all exchanges has fallen to a 2.5 year low of 2,349,040 as of Monday, as per Glassnode data. This means sell-side liquidity is diminishing, removing downwards pressures. 

Stablecoin Inflow On The Rise: On Wednesday, Ki Young Ju, CEO of on-chain data and analytics firm CryptoQuant, noted that there was a marked rise in the inflow of stablecoins into exchanges. The total number of deposits to all exchange wallets towered above the 36,500 mark.

Glassnode noted that the number of USD Coins (USDC) on exchanges have begun to rise rapidly in 2021, which is bringing more “buying power” into the cryptocurrency market.

The number of USDC on exchanges rose by over 112% in January, growing from $431 million to over $915 million, as per Glassnode.

Bullish Options: Dominant call activity prevailed on the day ETH reached its all-time high, signifying a bull market, according to Cointelegraph. Analysts at Laevitas explained the options action on Twitter.

Cryptocurrency analyst Joseph Young pointed out that the options market is now about a quarter of futures market open interest for Bitcoin.

“Watch out for options, it has a big impact on markets,” Young said on Twitter.

Related Link: Can Bitcoin Be The Next GameStop? The Word On The Street

Latest Ratings for GBTC

DateFirmActionFromTo
Feb 2018BuckinghamInitiates Coverage OnSell
Jul 2015WedbushInitiates Coverage OnOutperform

View More Analyst Ratings for GBTC
View the Latest Analyst Ratings

 

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