Bitcoin price exceeds $112,000 amid rare moves
by some alternative digital currencies
Bitcoin hit a new record high of $112,000 on Wednesday.
The price break came after about seven weeks of stability.
The sudden rise in the price of Bitcoin coincided with remarkable movements of
alternative currencies that had remained inactive for many years.
Data “CryptoQuant”
suggests that some older holdings, dating back 7 or 10 years, are starting to move
behaviors typically observed at pivotal turning points in the market.
These moves
may reflect profit-taking or portfolio restructuring in light of rising prices, but at
the same time they increase uncertainty about the market's near-term direction.
One of
- the most prominent examples of this was the transfer of two wallets from
- the “Satoshi” era totaling 20,000 Bitcoins, whose market value
- is currently equivalent to about $2.18 billion.
Despite
the magnitude of these transfers, the price was not negatively affected
indicating the current rigidity of the market.
On the other hand :
it was noteworthy that retail investors were absent from this rise.
According to Mr. “Kushal Manupati”
of the Binance platform
the current rise reflects a large-scale institutional entry that enhances
the credibility of the market, noting that this rise is not based only on individual
speculation but also on the growing investment role of Bitcoin in various portfolios.
For its part, “Santiment”
explained that individual investors began to withdraw before the price breakout
which is a common behavior that usually precedes major rises
as markets often move against the general mood.
With the price of Bitcoin exceeding its previous peak, attention is now turning to
the behavior of the network, especially if the number of currency holders begins to
increase, which may indicate a return to retail interest and the possibility of
stimulating a new wave driven by the fear of missing the opportunity.
The decline in the dollar index
strengthens expectations of Bitcoin's rise
The US Dollar Index (DXY) has been declining for four months
on a path that is the largest in more than two decades.
This decline, which coincides with US debt reaching record levels, may constitute
a supportive environment for the rise of high-risk assets, led by Bitcoin.
According to the platform “CryptoQuant”, financial history shows an inverse
relationship between the strength of the dollar and the performance of Bitcoin.
With the dollar falling below its 200-day moving average by about 6.5 points
the largest deviation recorded in 21 years, the data indicates the possibility of
the market entering a recovery phase for digital currencies.
Analyst “Darkfost” of “CryptoQuant”
explained that :
- periods of dollar weakness often prompt investors to reallocate their
- portfolios toward more risky alternative assets supporting
- Bitcoin as an unconventional investment haven.
Despite this, the price of Bitcoin has not yet shown a direct reaction
as the currency has been trading within a narrow range between $100,000
and $110,000 since May :
recently recording $108,800, according to data “CoinMarketCap”.
Observers believe that the continued price cohesion is due to the market's need for
additional incentives, both in terms of liquidity and major economic indicators.
At the same time
- reports indicate that the market is dominated by optimistic investors
- which enhances the chances of an upward breakthrough
- if additional supportive conditions are available.