The recent surge in Bitcoin prices aligns with a change in investor behavior, notably driven by leveraged bets in derivatives markets. According to CryptoQuant analyst 'crypto sunmoon,' this differs from past cycles where bull runs were driven by increased deposits to spot exchanges.
Leveraged bets involve using borrowed funds to enhance the size of investment positions. While profitable during price increases, they carry significant liquidation risks if prices move adversely. The increase in Bitcoin flowing into derivatives exchanges signals investor confidence in future growth, creating a feedback loop of rising prices and increased leveraged bets.
Bitcoin’s price has risen by 8.2% within a week, highlighting the ongoing relevance of leverage as BTC now trades around $71,804 after a peak of $73,562. The Stablecoin Supply Ratio Oscillator moving to levels not seen since 2022 suggests more stablecoins converting to Bitcoin, indicating rising demand.
Renowned analyst Ali noted that Bitcoin has historically peaked at certain Fibonacci retracement levels, predicting potential future prices between $174,000 and $462,000 if the trend continues. Technical metrics and historical patterns support ongoing growth expectations in Bitcoin’s price.
Fonte: www.newsbtc.com ↗