Over the previous three months, the price of Bitcoin [BTC] has considerably increased, resulting in a significant rise. The net exchange flow for Bitcoin has surged in this time due to the buzz surrounding BTC.
According to Glassnode’s data, the net exchange flows rose this week by about 4.18k BTC, which is the biggest net gain since LUNA’s demise in May 2022.
This upward trend, nevertheless, might soon come to a stop. Analyst James V. Stratten claims that the price of Bitcoin puts is elevated. This implies that the cost of purchasing put options has gone up, which may be a sign that investors anticipate a decline in the price of bitcoin.
The fact that perpetual contracts have now entered bearish territory is another sign of traders’ gloomy mood. A type of derivative instrument called perpetual contracts enables traders to make bets on the future value of an underlying asset, like Bitcoin, without actually owning the asset.
Despite the traders’ negative outlook, many addresses kept accumulating Bitcoin. Addresses holding more than 1 BTC increased and hit an all-time high at press time, according to data from Glassnode. It seemed like the majority of these addresses intended to hold their BTC. The diminishing velocity of the BTC network served as an indicator.
Around this time, the overall number of daily active addresses on the network decreased as well. The interest in Bitcoin NFTs remained high despite the network’s diminishing activity. The rise in NFT trade volume on the Bitcoin network indicates the same.
The surge in interest in Bitcoin NFTs and Ordinals indicates that Bitcoin may still increase in value over time, despite the possibility that Bitcoin bearish are correct in the short term.
