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Analysts Discuss Bitcoin’s Surge Past $68K, Fuelling Social Commentary and Short-Term Holder Gains
- Bitcoin’s price rose 20%, reaching US$68,800 in the past two weeks.
- Despite high-profile endorsements at the Bitcoin 2024 conference, the immediate price impact was minimal, as some of the news has been priced in.
- Glassnode highlights a recovery for Short-Term Holders, with their investments turning profitable again.
Over the past fortnight Bitcoin has posted some solid gains, going from around US$57,000 (AU$86,861) to US$68,800 (AU$104,831), a 20% gain. The Bitcoin 2024 conference in Nashville, Tennessee is over – and while it featured some interesting revelations – it didn’t do all that much for the price of BTC.
Related: Michael Saylor Predicts $49M Bull Case for BTC at Nashville Conference
Then again, the rumours surrounding the conference had been swirling around for some time. Trump was believed to announce Bitcoin as a strategic reserve asset and that’s just what he did. Robert F. Kennedy Jr. did the same, actually a day earlier, when he said that if elected, he would keep 200,000 confiscated BTC and buy up to 4 million BTC.
So, why did BTC not immediately take off? @DaanCrypto said in a tweet that the market probably needs to digest the news first and that some of it had already been priced in.
This was partially priced in but we saw a big flush of longs before Trump made the statement.
@DaanCrypto Trading Volume Shifts to BTC, ETH, SOL as Social Comments Turn Bullish
Analysts at Santiment pointed to a surge in trading volume of major cryptos such as Bitcoin, Ethereum and Solana. The resulting increase in liquidity and profitability often leads investors to explore further opportunities, they added. This typically includes layer-2s and smaller, more speculative assets, seeking to capitalise on their potential for high returns.
It’s common for market-wide growth to be powered by these layer-1’s, then redistributed to layer 2’s & more.
Santiment Additionally, the social sentiment seems to be shifting. According to the analysts, the recent rally has propelled the ratio of positive to negative comments about Bitcoin to its highest point since March 2023, putting an all-time high price back into consideration among traders.
Glassnode: Short-Term Holders are in the Green
The recent rally in Bitcoin has notably improved the financial outlook for Short-Term Holders (STHs), who experienced over 90% of their holdings falling into a loss in late July.
According to Glassnode, “This rally has now broken back above the STH cost basis and returned 75% of their held supply to an unrealized profit.”
This recovery is tracked by the STH-MVRV (Market Cap / Realised Cap) metric, which has risen above the break-even level of 1.0, indicating a return to profitability across various sub-groups of recent buyers, ranging from those who purchased days ago to those nearing the six-month mark, the analysts added.
As Glassnode reports, “At present, all constituents of the Short-Term Holder cohort have returned to positive profitability,” a trend that supports a strengthening investor sentiment.
Related: HSBC Australia Says Crypto’s Popularity with Scammers is Reason for Recent Block
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
