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Bitcoin (BTC) is beginning to exhibit initial signs of positive price momentum since June, as it seeks to decisively surpass the $69,000 price range and transition into a “euphoric bull market.”
As per Glassnode’s most recent “Week Onchain Newsletter,” the latest rally has enabled Bitcoin’s spot price to breach significant technical and on-chain price thresholds, pushing numerous investor positions back into unrealized profits and potentially enhancing market sentiment.
The AVIV Ratio, an essential on-chain metric evaluating the unrealized gains and losses of active investors, remains favorable, indicating that profitability has stayed strong despite the market encountering difficulties.
This ratio also suggests there may be further potential for growth as Bitcoin strives to evolve from an “enthusiastic bull market” phase into a “euphoric bull market,” characterized by a sustained breakthrough above its prior all-time high of $69,000.
Reclaiming key indicators
The recent price increase enabled Bitcoin to surpass both the 200-day and 111-day moving averages (DMA), which are historically significant indicators for investors.
Moreover, the report emphasized that the 365-day simple moving average (SMA) has served as vital support during macroeconomic events, underscoring the market’s resilience as Bitcoin continues its upward trajectory.
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According to Fibonacci retracement levels, Bitcoin has remained within an unusual trading range for several months, signifying a phase of consolidation rather than the more common dramatic peaks or declines.
Glassnode observed that net capital inflows have surged, rising by $21.8 billion over the past 30 days, elevating Bitcoin’s realized cap to an unprecedented $646 billion.
Institutional back at ‘cash and carry’ strategies
Bitcoin’s derivative markets are also experiencing robust growth, with open interest in both perpetual and fixed-term futures contracts reaching a new all-time high of $32.9 billion.
The increasing involvement of institutional investors is underscored by the CME futures contracts, which recorded $11.3 billion in open interest. These products provide institutional participants with regulated derivative exposure, enabling them to engage in yield-generating strategies such as cash-and-carry trades.
Despite this institutional engagement, futures trading volumes remain relatively low, indicating that the market has not yet witnessed a substantial increase in overall trading activity.
Nonetheless, with yields from cash and carry strategies currently around 9.6%, nearly double the yield from short-term US Treasuries, institutional interest in Bitcoin is anticipated to grow further, especially as the Federal Reserve hints at possible rate cuts in the upcoming months.
Additionally, the ongoing inflows into spot Bitcoin ETFs and CME futures markets further indicate that institutional traders are increasingly adopting long-spot and short-futures strategies to capture yield. This could enhance Bitcoin’s liquidity and solidify its status as a key asset in both retail and institutional portfolios.
The post Bitcoin’s bullish momentum seeking ‘euphoric’ market shift – Glassnode appeared first on CryptoSlate.
