After the recent rise in Bitcoin price, several factors such as crowd sentiment have been considered as the main reason for this rise. However, Axel Adler Jr. is a market expert I searched On this topic, noting that the recent and previous price increases are mainly due to supply and demand.
Supply and demand dynamics control the Bitcoin market
According to Santiment, a leading market intelligence platform, positive sentiment around Bitcoin is skyrocketing to reach a new high point this year, with… Investors Traders expect the digital asset to reach the $70,000 price level soon.
This increase in positive sentiment comes after BTC saw a surge of over 22% in the past three weeks. As a result, cryptocurrency enthusiasts and investors are currently watching the development closely to see how it affects Bitcoin’s price trajectory in the coming months.
However, Santiment addressed this growing anticipation, highlighting this Bitcoin To reach a New all-time high In the coming months, crypto assets may have to wait until public expectations cool down. Furthermore, the intelligence platform noted that there are currently 1.8 positive posts about Bitcoin and 1 negative, indicating strong optimism among investors and market participants. “Historically, markets always move in the opposite direction to public expectations,” the platform added.
While Santiment believes that Bitcoin’s next upward move may depend on a decline in positive sentiment among fans, Axel Adler Jr., a researcher at Chain and Mac, says the development does not fundamentally impact the Bitcoin market.
In his response to the publication, the researcher confirmed that the basics of supply and demand are what largely drive price movement. BitcoinInstead of the positive mood generated by the masses. “The main factors that move the market are always supply and demand,” he said.
Although social media may serve as a reflection of market participants, Adler claims that it does not necessarily lead to real market action. Adler’s insights suggest that these dynamics will always influence Bitcoin’s price pattern in the long term, despite short-term market reactions.
BTC is seeing supply profits grow
In recent research, analysts at blockchain data platform CryptoQuant said I mentioned The supply of Bitcoin profits has remained at high levels, which indicates that a large number of… Bitcoin holders Still in gains.
According to CryptoQuant, looking at past cycles, the profit margin on BTC supply has mostly remained above 80%. This ongoing maintenance of supply profits is an important indicator of whether or not an upward cycle is underway.
While there were several scenarios where profit fell below 80%, Cryptoquant He noted that it has remained above 80% in most cases in the ongoing bullish cycle. Meanwhile, for those moments when the ratio fell below the percentage, the platform identified them as buying opportunities.
Featured image from Unsplash, chart from Tradingview.com