The price of Bitcoin fell from its previous all-time high (ATH) above $126,000 to a four-month low of $98,962.06. This price shift is enough reason to assume that interest in Bitcoin has completely faded. Commenting on this, data analytics platform CryptoQuant shared insights into key metrics that debunk this bearish narrative.
Bitcoin realized cap outlook
According to CryptoQuant analyst Mignolet, the pattern driving the market growth might have changed, but the interest in the industry remains strong.
The analyst pointed out that this pattern is one of the changes that emerged after the approval of Bitcoin ETFs. Per the analysis, before ETFs, data based on ratios were cited to attract most of the attention. In this system, more essential metrics like volume data were often overlooked.
Mignolet confirmed that this oversight changed after the ETF approval. He noted that if traders or investors only look at ratios, it may seem like the market was not overheated; however, the current outlook shows this is not the case.
At the moment, investor interest remains clearly high, as shown in the more than 33% surge in Bitcoin’s volume to $111 billion overnight.
With the current outlook the BTC price is showcasing, there is mixed sentiment on market direction. While Bitcoin is underperforming U.S. treasuries, expectations for the continuation of the bull run remain high.
Bitcoin drags altcoin down
The loss in the price of Bitcoin is not happening in isolation. Other top altcoins, including Ethereum, have also lost a significant part of their market value as the industry lost $1 trillion in a few weeks.
With Ethereum considered “screwed,” investors are exploring new anchors for price appreciation.
Analysts like Real Vision CEO Raoul Pal have offered explanations as to what the market can expect in the coming weeks. According to Pal, the road to Valhalla hinges on the end of the current U.S. government shutdown.
He argued that the shutdown has drained liquidity from the market as the Treasury General Account (TGA) is just building up without being spent. When the shutdown ends, he argued, the government will inject up to $300 billion into the economy in the subsequent few months.
Many market experts have also warned against more volatility in the weeks ahead. While long-term holders are currently selling, some argues that the sell-off is a healthy correction that will result in a bigger rally in the long term.
As of press time, the BTC price was changing hands for 2.69% at $101,786. However, the top coin is still up 7.52% year-to-date.
Source: https://u.today/no-interest-in-bitcoin-is-not-dead-new-data-hints
