Bitcoin (BTC) price has risen 8% since the Federal Reserve announced its 50 basis-point rate cut. This spike has influenced the âsupply in profitâ metric, suggesting Bitcoinâs potential for further gains.
The âsupply in profitâ metric describes the percentage of Bitcoinâs circulating supply purchased at a price lower than the current market value.
Data Evidence Showing Many BTC HODLers in Profit
According to research firm CryptoQuant, Bitcoinâs supply in profit has remained above 80% for most of the current market cycle. Analysts at the firm added that recent summer pushed the metric below 80% temporarily several times. However, those drops were buying opportunities in anticipation of further price gains.
The consistent maintenance of a high level of BTC supply in profit strongly indicates whether a bull cycle is ongoing. Typically, a rise in the âsupply in profitâ indicator means more Bitcoin holders are in profit. This can lead to reduced selling pressure and increased market confidence.
One notable factor behind the surge is the increased institutional interest in Bitcoin. The U.S.-based Bitcoin ETFscontinued a three-day bullish trend on September 25, with an inflow of $105.84 million. Other factors include Chinaâs rate cuts, major stimulus announcements, and the influence of US political parties ahead of the November elections.
Market analysts anticipate Bitcoinâs price will remain bullish in the near term, with Kamala Harris recently pledging support for crypto.
Bitcoin Price Current Market Outlook, Price, Volume Trends
At press time, the price of BTC was trading at $64,757, demonstrating a 0.5% increase in the past 24 hours. The trading volume within this timeline increased by 92% to $27.6 billion, demonstrating investorsâ commitment to accumulating the coin.
BTC rose nearly 2% in the past seven days, extending over 8% price increases that occurred in the previous two weeks. The next resistance level for Bitcoin is at $66,000. A break above this level might see Bitcoin recording higher prices. Conversely, Bitcoinâs price could slide lower if the digital asset fails to break above the level.
Investorsâ sentiment on Bitcoin remains bullish, while the Fear & Greed Index shows Greed at 61. In terms of market cap, Bitcoin remains number one, valued at $1.2 trillion. Additionally, the current yearly supply inflation rate is 1.34%, meaning 260,890 BTC were created last year.
October Forecast, the Uptober Expectation
The surge in BTC price this September is in preparation for a bullish month ahead. October has historically lived up to its expectations of an âUp-toberâ reputation. Since 2013, there have been only two October months when Bitcoin ended in the red.
Notably, the leading cryptocurrency by market cap has recorded gains as high as 54% and an average of 22%. Market experts expect the âUptoberâ trend to continue this year. Some project a $70,000 price target for BTC in the coming weeks.
With only a few hours left before we welcome October, traders and investors are early in anticipating BTCâs next big move.