Bitcoin Experiences Decline to $96.8K with New Investor Activity Slowing, Yet Positive Funding Rates Suggest Potential Recovery
The post Bitcoin Experiences Decline to $96.8K with New Investor Activity Slowing, Yet Positive Funding Rates Suggest Potential Recovery appeared on BitcoinEthereumNews.com.
Bitcoin’s recent drop to $96.8K has sparked discussions among analysts about its future trajectory, as new investor engagement appears to slow. Despite the current selling pressure, a robust influx of new investors has kept BTC’s market sentiment generally bullish. As noted by CryptoQuant, “If the purple cloud stays above this line, it suggests BTC’s price could remain in bullish territory and may continue to rise.” Bitcoin price drops to $96.8K amid selling pressure, yet new investor influx hints at potential price recovery. Analysis explores underlying trends. Influx of New Investors Keeps BTC High Since the beginning of 2025, Bitcoin has witnessed a remarkable surge in new investors entering the market. This influx has played a crucial role in supporting the asset’s bullish momentum, as evidenced by the Ratio of New and Old Bitcoin Supply on CryptoQuant. This important metric compares BTC purchased in the last week to six months with those acquired from six to twelve months ago, providing insights into investor behavior and market health. Source: CryptoQuant When the new supply ratio rises, denoted by the purple cloud surpassing the dotted line, it indicates increased purchases by new investors. This trend often correlates with price rallies, suggesting sustained interest in BTC. Primary Drivers, U.S. Investors, Are Cooling Analysis indicates that the recent wave of BTC acquisition among new participants is largely attributed to U.S. investors. The Coinbase Premium Index historically shows high buying activity within this demographic. Currently, however, this index is showing a decline from 0.129 to 0.010, indicating that while buying activity is slowing, it remains in a positive zone, suggesting some resilience. Source: CryptoQuant In conjunction with this metric’s decline, Bitcoin’s transaction count over the last 24 hours has also dwindled to 21,140. In total, around 606,570 BTC changed hands, accounting for approximately $59.1 billion in…
Filed under: News - @ February 7, 2025 9:16 pm