Bitcoin’s price has been on the rise this month, reaching a peak above $71,500, a level not seen in the past 20 weeks. Currently, Bitcoin is trading at $70,900, with a mere 3.7% gap from its all-time peak.
There are several optimistic signs indicating that Bitcoin could achieve a new all-time high (ATH) by the end of “Uptober,” fueled by positive market sentiment.
The Realized Price of Bitcoin UTXO
Analysis of the Realized Price of Bitcoin UTXO for short-term holders suggests a potential continued upward trend in the near future. According to CryptoQuant, the Realized Price of wallets holding BTC for less than a month is approaching and might surpass that of wallets holding Bitcoin for three to six months.
Historically, such crossovers have been followed by significant price upticks. A similar crossover is on the horizon, reinforcing the bullish outlook for BTC.
The activity of short-term holders typically influences the sustainability of a rally. Therefore, an increase in new transactions at higher prices could significantly improve market sentiment and potentially pave the way for an ATH.
98% of Investors Are in Profitable Positions
Research from IntoTheBlock indicates that 98% of Bitcoin holders are currently in profit, with only 1.26% at a break-even point.
Enhanced wallet profitability boosts investor confidence, encouraging holders to retain their assets rather than sell. This scenario can instigate a fear of missing out (FOMO), leading to the entry of new buyers into the market, further reinforcing the upward trend.
FOMO is evident as the Fear and Greed Index currently sits at 72, indicating a greedy market sentiment.
Increasing Demand for Bitcoin ETFs
On October 28th, US spot Bitcoin exchange-traded funds (ETFs) witnessed their highest inflows in two weeks. SoSoValue reports that daily inflows amounted to $479 million, with Blackrock leading the way with $315 million in inflows.
Reportedly, BlackRock’s Bitcoin holdings have exceeded 400,000 coins, with the asset manager on course to surpassing Satoshi in holdings and becoming the largest Bitcoin holder.
The total assets held by US spot Bitcoin ETFs amount to $68.47 billion, representing 4.9% of Bitcoin’s total supply. Within a fortnight, these ETFs have recorded net inflows of $3 billion.
As Bitcoin garners interest from both retail and institutional investors, its dominance over altcoins has continued to rise. Currently, Bitcoin’s dominance stands at 60%, while the altcoin season index has dropped to 27%.