Bitcoin (BTC) Is Approaching a Turning Point After Extending Rally Beyond $47k
Bitcoin witnessed significant developments in recent weeks that have helped it extend its rally, surging past $47,000 for the first time in nearly a month. The uptick has brought a sense of relief for its investors, who recently endured a brief plunge to 38,500 and now find themselves comfortably in the profit zone amidst market recovery.
Interestingly, the latest data by a CryptoQuant analyst suggests that the market is approaching a “turning point.”
Where Is Bitcoin Heading?
Net Unrealized Profit/Loss (NUPL) is an important metric for assessing the overall sentiment of Bitcoin investors and whether the market is overvalued or undervalued. As of February 8, 2024, with a NUPL value of 0.48, investors are evidently still in profit, although indications signal a transition to a crucial stage.
CryptoQuant analysis revealed that the significance of NUPL extends beyond mere profitability metrics. It also functions as a precursor to market trends, with values surpassing 0.5 historically, marking the beginning of a bullish market phase.
Remember the 2021 bull run? NUPL data was flashing warning signs months before the peak
“While everyone’s watching the price, NUPL data dives deep into the psychology of Bitcoin whales (and it’s fascinating).” – By @Bullfighterr
Full post https://t.co/wtGmwTRmHF
— CryptoQuant.com (@cryptoquant_com) February 9, 2024
Therefore, the current NUPL value indicates a potential transition to a more bullish stance. Investors may interpret this as a signal to increase their exposure to the largest cryptocurrency. Such a sentiment can further propel Bitcoin’s price appreciation.
Bitcoin ETFs Set Record
The signal for the onset of a bull run coincided with the notable inflow recorded by the US spot Bitcoin ETFs despite encountering challenges in the initial days. According to data from BitMEX research, Bitcoin ETFs have raked in a total inflow of $2.11 billion since its launch on January 11th.
The ETFs experienced an inflow of $405 million, which translated to almost 8,935 BTC. The leading contributors to these inflows include investment titans BlackRock (IBIT) and Fidelity (FBTC).
As reported by CryptoPotato, the performance of BlackRock and Fidelity ETFs stands out, particularly considering that many other ETFs on the list were categorized as “Bring Your Own Assets” (BYOA) ETFs, suggesting that a single investor was accountable for the entirety of the ETF’s Assets Under Management (AUM).
Additionally, the two ETFs have consistently managed to attract inflows on each trading day following their launch.
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