- Bitcoin has experienced a significant surge in demand from large investors, suggesting a potential price increase.
- Despite the positive price action, social metrics indicate a weakening trend.
- Jack Mallers, CEO of Strike, emphasized Bitcoin’s value in a recent conversation with Antony Pompliano.
Discover the latest developments in Bitcoin’s price surge and the factors influencing its trajectory.
Bitcoin’s Price Surge Amidst High Demand
Bitcoin [BTC] has had an eventful week, breaking past the local range high of $67k on May 20th. Following this breakout, Bitcoin retested the $66.3k-$66.6k support zone on May 23rd and 24th, subsequently bouncing back to trade at $69.1k at the time of writing. This upward momentum is likely to continue as demand for Bitcoin remains robust.
Social Metrics and On-Chain Activity
Despite the positive price action, social metrics for Bitcoin have shown signs of weakness. Since March 11th, the Social Volume for Bitcoin has been on a downward trend, with Weighted Sentiment remaining negative throughout May, except for two brief positive surges. This indicates a decline in social media engagement surrounding Bitcoin.
On-chain activity has also seen a decrease, with daily activity trending lower since mid-March. However, the dormant circulation metric has not shown significant spikes recently, suggesting that there is no large wave of selling pressure. This is a positive sign, indicating reduced selling pressure in the market.
Is the Demand for Bitcoin Higher Than Ever Before?
Crypto analyst Axel Adler recently highlighted the high demand for Bitcoin, based on entity-adjusted transaction counts. According to Adler, the current demand levels are comparable to those seen during the 2016 rally. With Bitcoin’s price now at $69.1k, compared to $300 in 2016, the capital involved is significantly greater, underscoring the increased interest from both retail and institutional investors.
This heightened demand, coupled with reduced selling pressure from dormant Bitcoin, suggests that Bitcoin is likely to break past the $71.4k region once again.
Conclusion
In summary, Bitcoin’s recent price surge is driven by strong demand from large investors and reduced selling pressure. While social metrics indicate some weakening, the overall outlook remains positive. As demand continues to grow, Bitcoin is poised to potentially reach new all-time highs in the near future.
