ARK Invest’s latest monthly report notes that, although Bitcoin (BTC), on-chain is still net positive, two important support levels are needed to maintain a bullish trend.
What is the Bitcoin Healthy Chain Metrics?
Its reportARK Invest argues that Bitcoin’s market structure must be preserved. In August 2024 the report states that BTC fell by 8.7%, to $58,972. It was unable to break through its 200 day moving average. Two key areas of support at $52,000, and $46,000 were critical in maintaining its positive momentum.
This report asserts that Bitcoin’s on-chain is still healthy, despite temporary setbacks. remains ‘net positive.’ The Bitcoin network has a net positive outlook across the board, including network metrics like security, usage and holder behaviour.
Bitcoin’s Long-Term Holder Supply, which is BTC that holders have held longer than 155 calendar days, has increased by 3.3% MoM and decreased marginally 0.23 % YoY. Bitcoin’s lock supply also increased both in MoM terms and on a YoY basis by 0.58% and 1.8%, respectively.
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Bitcoin’s transactions have fallen by 24,5% MoM, and 2,3% YoY. This is a bearish indicator on the blockchain. Bitcoin’s on-chain metrics are bullish, and overshadow one of the bearish indicators, so its overall on-chain health is still positive.
A key performance indicator to support ARK Invest’s bullish stance is the short-to-long liquidity dominance. This metric is a measure of short-term liquidations compared to long-term ones over the past 90 days. It has been at its lowest level since Q2 2023.
Bitcoin ETF Investors Underwater At Large
This report shows that, by August 2024 at the latest, US spot ETF participants’ estimated cost basis was greater than BTC. It suggests that ETF investors may suffer a loss. This chart confirms that the estimated cost basis for US spot ETF investors is higher than BTC’s price.
US Securities and Exchange Commission approved Spot Bitcoin ETF was launched earlier this year. It allowed institutional investors and retail investors alike to get exposure to Bitcoin, the largest cryptocurrency in the world through an investment product that is compliant.
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Bitcoin ETFs enjoy unprecedented interest among institutional investors. Wall Street titans Goldman Sachs and Morgan Stanley, in particular, have invested millions of dollars to Bitcoin ETFs. Ethereum ETFs, on the other hand, haven’t been popular. You can also read more about it here. piqued Interest in institutions at similar levels.
Bitcoin is currently trading at $58,836, a slight increase of 0.2% over the last 24 hours. BTC has a total market capitalization of $1.14 trillion.
Charts are from ARK Invest, Tradingview.com and Unsplash.
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Source: www.newsbtc.com