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Bitcoin and other prominent cryptocurrencies are exhibiting signs of recovery after experiencing a significant decline last week, largely influenced by macroeconomic conditions.
In the previous week, Bitcoin’s value fell by 4%, reaching a multi-week low of $112,000, which led Arthur Hayes, co-founder of BitMEX, to caution that persistent macroeconomic challenges could drive BTC back toward the $100,000 level.
Nonetheless, Maksym Sakharov, co-founder and CEO of WeFi, informed CryptoSlate that the downturn was a natural result of an overheated market.
Sakharov stated that Bitcoin’s remarkable bull run in the preceding month, culminating in a new all-time high, made the price decline somewhat anticipated. He noted that the market was merely taking a pause before resuming its upward trajectory.
Currently, the market is demonstrating signs of renewed strength, with Bitcoin and other significant assets, such as Ethereum, Solana, and BNB, all starting to recover and exhibit gradual increases.
XRP, in particular, distinguished itself among the top 10 digital currencies, rising over 5% in the last 24 hours to surpass the $3 threshold after briefly trading below it during the weekend.
On-chain data indicates sustained demand
Despite the recent downturn, market analysts maintain a positive outlook regarding Bitcoin’s long-term prospects.
Abramchart, a contributor at CryptoQuant, highlighted that Bitcoin’s bull market is far from finished, as long-term holders (LTHs) continue to show confidence in the leading cryptocurrency.
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The analyst noted that the Net Unrealized Profit/Loss (NUPL) indicator has remained above 0.5, indicating that Bitcoin is still yielding profits for many investors.
Supporting this perspective, Darkfost, another analyst, remarked that the demand for Bitcoin continues to be strong.
He pointed out that the number of addresses accumulating Bitcoin without selling has been increasing, with an average of 50,000 BTC gathered by these addresses over the past month. This ongoing buying activity reinforces the idea that demand for the asset remains solid.
Bitcoin Accumulator Addresses (Source: CryptoQuant)
Additionally, a chart monitoring “apparent demand,” which contrasts new Bitcoin issuance with the volume of coins inactive for over a year, reveals a favorable trend.
In the last 30 days, approximately 160,000 BTC have been absorbed by long-term holders, further validating market resilience.
Bitcoin Apparent Demand (Source: CryptoQuant)
WeFi’s Sakharov concluded that these trends indicate Bitcoin’s recent correction is simply part of a larger cycle. He remains optimistic that the asset is poised to achieve new highs, driven by structural demand and the conviction of long-term investors.
The post XRP jumps 5% while Bitcoin recovers from macro-driven slump appeared first on CryptoSlate.
