Rising Bitcoin (BTC) Demand Suggests the Market Is Currently in Bull Season.
Since the beginning of the year, there has been a widespread accumulation of the world’s largest cryptocurrency market capitalization, Bitcoin (BTC), as many traders prepare themselves for a bull market.
Top Bitcoin trader and Analysts Willy woo says that: “Heatmap of Bitcoininvestor demand. Uses algorithmic signal processing of on-chain data provided by @glassnode. We are in a bull market, many don’t know this yet.”
Heatmap of #Bitcoin investor demand.
Uses algorithmic signal processing of on-chain data provided by @glassnode.
We are in a bull market, many don't know this yet. pic.twitter.com/KZHT8v40dL
— Willy Woo (@woonomic) April 5, 2022
While many are still anticipating a bull market, little did they know that the bull market is upon us given the positive events that have continued to be reported in the general cryptocurrency market?
Investors’ Confidence Surge
Demand for the top asset class has spiraled over the past month, with investors showing confidence in Bitcoin.
Recall that the price of Bitcoin tumbled below $33,000 in February after Russia declared a full-scale invasion of Ukraine, causing panic in the market, with the Bitcoin Fear & Greed Index falling below 25, indicating extreme fear.
However, investors’ confidence in Bitcoin has skyrocketed over the past week after rising to a high of 55, which suggests Greed in the behavior of traders.
At the time of writing, the index has dipped slightly to a neutral level of 48. Meanwhile, the price of Bitcoin has surged tremendously from what was recorded during the peak of Russia’s invasion of Ukraine.
Bitcoin, which traded below $40,000 for most parts of last month, is sitting comfortably above the $40,000 price level.
Bitcoin is up 19.6% in the past month, with its price rising to nearly $48,000 last week before shedding a few thousand dollars. BTC is currently trading at $45,241 across major exchanges, according to data on Coingecko.
Growing Demand for Bitcoin
With several developments suggesting that the market is currently in bull season, investors’ appetite for Bitcoin has increased.
According to data from popular cryptocurrency on-chain metric data provider Glassnode, the number of addresses holding at least one BTC has hit an all-time high (ATH) of 833,242.
The number of addresses has continued to grow since the beginning of February 2022, following the fall in Bitcoin prices.
The Number of Addresses with at least 1 #Bitcoin has made an All-Time High at 833,242 addresses.
This metric has been rapidly increasing since the beginning of February 2022. pic.twitter.com/Vs051qmjqf
— On-Chain College (@OnChainCollege) April 6, 2022
Meanwhile, MicroStrategy resumed its Bitcoin accumulation spree this week by adding another 4,167 BTC bringing its total Bitcoin holding to 129,218 bitcoin worth $5.84 billion.
In addition, the Luna Foundation Guard (LFG), a nonprofit organization in charge of the Terra blockchain declared last month that it will be buying Bitcoin worth $10 billion as a reserve for its stablecoin.
So far, the company has purchased $1.4 billion worth of BTC and is still committed to raising more funds to reach the $10 billion target.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
