As a seasoned crypto investor with over two decades of market experience under my belt, I find it refreshing to see the discourse around Bitcoin’s price movements shifting towards the fundamentals of supply and demand. Axel Adler Jr’s insights resonate deeply with me as they align with my long-held belief that the market is ultimately driven by these two forces.
After the latest increase in Bitcoin‘s price, many factors such as crowd psychology are thought to be primarily responsible for the rise. Yet, Axel Adler Jr., a market analyst, has explored this topic further, suggesting that the recent and prior price jumps are predominantly influenced by supply and demand dynamics.
Supply And Demand Dynamics Control Bitcoin’s Market
Based on data from Santiment, a top-tier market insights provider, there’s been a substantial surge in optimistic feelings towards Bitcoin. This positive sentiment has recently peaked at its highest point this year, as investors and traders speculate that the cryptocurrency could hit the $70,000 price mark soon.
Over the past three weeks, Bitcoin has seen a significant surge of more than 22%, leading to heightened optimism among crypto fans and investors. Now, everyone is keeping a close eye on further developments to gauge how this trend might influence Bitcoin’s price direction over the next few months.
In other words, Santiment points out that for Bitcoin to achieve a fresh record high soon, it may need to endure a period where investor enthusiasm has waned slightly. They also mentioned that at present, there are approximately 1.8 positive posts about Bitcoin compared to just one negative one, indicating a strong level of optimism among investors and market participants. The platform further explained that markets have a tendency to move counter to the crowd’s predictions, saying “Markets typically shift in the direction opposite to the crowd’s expectations.
Although Santiment thinks that Bitcoin’s future price increase might be influenced by a decrease in overall positive public sentiment, Axel Adler Jr, a researcher focusing on on-chain and macro analysis, proposes that such developments may not significantly affect Bitcoin’s market movement.
In response to the discussion, the researcher emphasized that it is primarily the principles of supply and demand that influence the fluctuations in Bitcoin’s price, rather than the overall optimism among the public. Put simply, he believes the key drivers behind market changes are always the availability (supply) and desire (demand).
While social media may mirror the sentiments of market players, Adler posits that it doesn’t always lead to immediate trading actions. Long-term, however, Adler believes these dynamics will consistently impact Bitcoin’s price trends, even if they don’t directly cause short-term market fluctuations.
BTC Sees Growth In Supply Profit
As an analyst, I’ve recently observed that the supply of Bitcoin held by individuals who are currently in profit has stayed at elevated levels according to data from CryptoQuant. This suggests a significant number of Bitcoin holders continue to enjoy their gains.
Based on data from CryptoQuant, it seems that historically, the profit earned from Bitcoin supply has generally been more than 80%. The consistent high profitability of this supply could signal the presence of a bull market.
In many instances during this bull market, CryptoQuant observed that profits remained above 80%. However, when they occasionally dipped below that threshold, CryptoQuant flagged these occurrences as potential buying opportunities.
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2024-10-01 07:11