The Bitcoin network is showing strong signs of growth as the number of new wallets created in a month exceeds the yearly average.
The world’s largest cryptocurrency, Bitcoin (BTC), has been hovering around $27,000 for a while now, with increased trader and network activity. On-chain data shows that traders have been heavily betting against Bitcoin, which could lead to a ‘short squeeze’ pushing prices up, including Shiba Inu.
On-chain data provider Santiment noted that Bitcoin traders are taking a strong bearish stance on platforms like Deribit and Binance, increasing the chances of potential liquidations that could drive prices higher. Since the surge in short positions started last week, Bitcoin’s price has gone up by about 4%, and this trend may continue.
Meanwhile, Bitcoin’s active addresses have reached their highest levels in five months, boosting the possibility of the BTC price returning to its 2023 high of $31,000.
Crypto analyst Ali Martinez also points out that bull markets often coincide with increased on-chain activity. This is evident when the monthly average of new Bitcoin wallets surpasses the annual average, indicating stronger network fundamentals and increased usage. Despite stable prices, Bitcoin’s on-chain activity is on the rise, suggesting the potential for a Bitcoin bull run to make a comeback.
Institutional Adoption of Bitcoin and Its Response to FOMC
In recent months, major financial giants like BlackRock and Fidelity have shown increasing interest in Bitcoin. They’ve even applied for approval from the US SEC to launch Bitcoin ETFs.
Japanese banking giant Nomura has also joined the Bitcoin adoption trend. They’ve introduced the Laser Digital Bitcoin Adoption Fund to make it easier and safer for institutional investors to get into Bitcoin.
To ensure the fund’s assets are secure, they’re using Komainu, a regulated custody solution created by Nomura, Ledger, and Coinshares.
Fed Keeps Interest Rates Steady
During Wednesday’s Federal Open Market Committee (FOMC) meeting, the Federal Reserve decided to leave interest rates unchanged, keeping them in the range of 5.25%-5.50%. This decision didn’t have much impact on Bitcoin or the broader cryptocurrency market.”
Bitcoin’s Price Movement: What to Watch For
Bitcoin is currently facing a situation where it’s approaching a trendline with resistance at $27,440. If there’s a correction, Bitcoin might drop to $25,200 or even lower. This could be a chance for those interested in buying at a lower price.
However, it’s important to watch for a 4-hour candlestick closing above $27,440. If that happens, it could indicate the return of a bullish trend.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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