Increased Demand for Bitcoin Sparks Optimism, Boosting Bull Score to 80
Visualize the cryptoverse as a frothy, bubbling cauldron - Bitcoin (BTC), the bewitched potion, has knocked the lid off today, breaking past the $103,000 mark! With this enchanting climb, the market sentiment has swung like a pendulum to a rousing bullishness.
According to the clairvoyant seers of CryptoQuant, the surge was fuelled by a hefty surge in spot demand that shot up the Bull Score Index from a bearish 20 to an effervescent 80 - a reading last seen in over a year.
Bucking the Trend
The index consists of ten prophetic on-chain metrics, including liquidity, network activity, and market inflows. Historically, flows above 60 have augured sustained rallies, while those below 40 have often hinted at bear markets.
The augury of CryptoQuant suggests that, as recently as April 7, the Bull Score was mired at a miserable 10, struggling to propel BTC above $80,000. But fear not, dear reader, for the tides turned. A tireless grind in spot demand, stirred up by ETF inflows and institutional interest, rejuvenated the market.
By the crescent moon of April 26, the score had hit 40, as BTC embraced the $94,000 level. This week's meteoric leap to 80 comes as BTC breaks the $100,000 mark for the first time since February - an awe-inspiring feat indeed!
Lending credence to the notion, Santiment, the wise oracle of the cryptoverse, discovered more than 344,000 new wallets had burgeoned on the Bitcoin network over the past week. Such a proliferation of life has often been observed during previous cycle tops, hinting at a broader demographic, eagerly diving into BTC.
CryptoQuant's CEO, Young Ju Ki, acknowledged the importance of this change, proclaiming on Twitter:
"Two months ago, I declared the bull cycle was over, but I was a fool... the selling pressure is easing, and massive inflows are gushing through ETFs."
Young Ju Ki elucidated that traditional bearish catalysts, such as whale dumps, are now being neutralized by institutional demand. An unrelenting appetite for Bitcoin by corporations like The Strategy, spot ETFs, and even governmental interest - from places as far as the White House, where the signing off on a national Bitcoin Strategic Reserve by U.S. President Donald Trump was witnessed - has engendered an extraordinary infusion of liquidity.
This epic inundation of capital renders past cycle patterns increasingly irrelevant.
"It's time to jettison that cycle theory," cautioned the sage. "The market is harmonizing with TradFi, and institutional liquidity is vanquishing traditional sell-off patterns."
A Rally from April Lows
At the present, BTC is trading a delightful $103,260, a hearty increase of 3.5% in the last twenty-four hours. This illustrious asset has also ascended a noteworthy 33.7% over the past thirty days, while its yearly growth plies it an almost 70% advance.
However, despite this remarkable resurrection, BTC still nags 5.2% below its zenith of approximately $109,000 earlier in the year. Intriguingly, Bitcoin's respectable 6.6% uptick across the week implies that, despite exerting dominance over the altcoins with a commanding 60.5% share of the sector, its performance remains minutely slower than the broader cryptoverse, which swelled 8.8% in the last week.
- The Bull Score Index, a metric developed by CryptoQuant, surged from a bearish 20 to an optimistic 80, fueled by a surge in spot demand and institutional interest, helping drive Bitcoin's price above $103,000.
- The increase in the Bull Score Index, combined with the proliferation of more than 344,000 new wallets on the Bitcoin network over the past week, suggests a broader demographic eagerly diving into BTC, reminiscent of previous cycle tops.
- CryptoQuant's CEO, Young Ju Ki, acknowledged the importance of the change in the market, stating that the selling pressure is easing, and massive inflows are overwhelming ETFs.
- The increased institutional demand and interest have engendered an extraordinary infusion of liquidity, making past cycle patterns increasingly irrelevant in the current market, as the market harmonizes with TradFi (Traditional Finance).
- Despite Bitcoin's significant increase in the last month and year, reaching a price of $103,260 and growing almost 70%, it still lags 5.2% below its peak of around $109,000 earlier in the year.
- The broader cryptoverse, however, swelled by 8.8% in the last week, indicating that while Bitcoin is dominating the altcoins with a 60.5% share, its performance remains slightly slower compared to the sector as a whole.
