Unlike some of the previous bullish rallies in Bitcoin, the current positive market sentiment in BTC has sustained for a longer period of time. While the crypto asset saw major corrections in the past after touching all-time highs, things look different this time.
Bitcoin held the key price level of $63,000 over the weekend as its market cap stayed above $1.2 trillion. BTC’s crypto market dominance also jumped from 42% to 43.3% during the last two days. In the past 24 hours, Bitcoin gained more than Ethereum (ETH), Solana (SOL), and Binance Coin (BNB).
As far as Bitcoin’s on-chain activities are concerned, the digital currency saw a sharp increase in supply movements. According to the data published by Glassnode, almost 18.3% of the total Bitcoin supply was moved above its $1 trillion market cap level.
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“The volume of Bitcoin last moved above a $1 Trillion Market Cap has reached 3.454M BTC. This means 18.3% of the supply was transacted above $53k, demonstrating capital inflows. 474k BTC were last spent above the current price, and are thus currently holding an unrealized loss,” Glassnode highlighted recently.
Bitcoin’s Positive Market Sentiment
BTC’s current rally is one of the longest bullish rallies in its history. Bitcoin started 2021 at a price level of $29,000 but the institutional adoption and retail craze pushed its price to an all-time high of $68,600 on 9 November 2021. BTC’s declining exchange supply ratio has also played an important role in its price as the supply was lower than the demand. In March 2020, the exchange balance accounted for more than 17% of the total BTC supply. The ratio dropped sharply to less than 13% in November 2021.
“As Bitcoin hits new All-Time-Highs, exchange balances continue to be depleted. Exchange reserves we track, account for just over 12.9% of the circulating supply and are still seeing outflows, even at ATH prices,” Glassnode mentioned in a post on Twitter last week.