It looks like Bitcoin is enjoying the Easter holiday. After moving around $28,000 in the last few days, the flagship cryptocurrency climbed, breaching the $30,000 mark.
Previous signals suggested a potential surge, and investors were also in bullish momentum. But some analysts caution that old support levels must be retested first.
Bitcoin’s volatility is low. It strengthens the chance that it may make a further rebound. Bitcoin is trading above $30,000, at least for now.
While 2022 was rough for Bitcoin, it looks like 2023 has been a lot kinder. While we don’t know if this fair weather will continue. Bitcoin bulls are happy for now!
Macro Madness!
One of this week’s highlights is the CPI and PPI data release, potentially impacting the crypto market. On Wednesday, the US Bureau of Labor will drop the March consumer price index (CPI), and the market is waiting to see if inflation will decrease further.
The US Federal Reserve (Fed) on March 22 raised interest rates by 0.25 basic points, giving a cautious view on the current banking crisis and signaling that a rate hike is ending.
Last month, a series of banking crises put the Fed in a challenging position between fighting inflation and stabilizing finance. However, the Fed decided to stick to its vital responsibility.
The correlation between Bitcoin and gold is stronger than between Bitcoin and Nasdaq. According to a recent report, the inverse correlation between BTC and the US dollar is also rapidly dissipating.
Bitcoin Holders Are Patient
The number of people holding Bitcoin is rising, with an increasing number of investors and traders viewing it as a viable long-term investment option. Many of these Bitcoin holders see it as a potential store of value that can protect their wealth from inflation and currency devaluation.
According to data compiled by the crypto analytics platform Glassnode, more than half of all Bitcoin in circulation has not been touched for two years. Crypto influencer Anthony Pompliano noted that 53% of Bitcoin’s circulating supply has been inactive in the last two years, a new record high for this metric.
According to Pompliano, nearly 29% of Bitcoin’s circulating supply has been inactive over the past 5 years, totaling over 5.6 million BTC worth around $158 billion.
Around 2.7 million BTC worth $76 billion has not been touched in a decade. There are two potential scenarios: either investors experienced significant losses, or they accumulated their holdings.
Some community members believe these investors bought Bitcoin at an all-time high and are waiting for the right time to sell.
Meanwhile, “Bitcoin” recently became the most searched term in the United States, surpassing other popular keywords such as Donald Trump and Elvis Presley.
BTC is Hot
Recent search trends in the United States show that “Bitcoin” has become the most popular search term, surpassing Donald Trump and Elvis Presley. This may be due to the announcement by the United States Federal Reserve regarding the launch of the FedNow payments system in July.
Additionally, the number of crypto wallets holding at least one Bitcoin has hit a new all-time high, nearing the one million mark, as reported by the cryptocurrency tracking platform LookIntoBitcoin.
The total number of Bitcoin holders has been rising at the fastest rate since early 2021 when the price of BTC first exceeded $64,000.
The crypto analytics platform Santiment shared a chart indicating that the total number of addresses holding any amount of Bitcoin has reached 46.16 million recently.
The chart shows a similar pattern despite the current price being over 55% lower than during January-April 202d.
The team at Santiment suggests that the rising number of people “hodling” Bitcoin could be attributed to crypto traders becoming increasingly content with holding onto their digital assets for the long term.
Source: https://blockonomi.com/bitcoin-surpasses-30000-ahead-of-us-cpi-report/