Bitcoin Price Reaches All-Time High, but a Correction May Be Imminent: CryptoQuant
Bitcoin price hit an all-time high of $69,000 on Tuesday and is currently hovering around the $67,000 mark. However, according to on-chain data provider CryptoQuant, a short-term pause or correction may be brewing as prices have increased too fast.
Record Bitcoin Inflows into Accumulation Addresses
CryptoQuant’s data reveals that Bitcoin inflows into accumulation addresses have reached record daily inflows of 38,000 Bitcoin as prices approached record-high levels. This surge in Bitcoin price was largely driven by new investors pouring in money.
- The total holdings at these addresses are now 1.5 million Bitcoin.
- Accumulation addresses represent investors who only accumulate Bitcoin and never sell.
- The accelerating growth in their Bitcoin holdings indicates strong demand.
Strong Bitcoin Demand from ETFs
CryptoQuant also reports that the total Bitcoin holdings of ETFs (excluding Grayscale GBTC) currently stand at 360,000 Bitcoin, which represents 1.8% of the total Bitcoin supply. The approval of eleven Bitcoin spot ETFs in the U.S. earlier this year demonstrates a significant appetite for such products.
- BlackRock, the world’s largest asset manager with $10 trillion in assets, entering the Bitcoin market has triggered another bull market.
Bitcoin Could Reach $140,000
Bitget’s Managing Director, Gracy Chen, predicts that Bitcoin could climb to $120,000 – $140,000 based on recent ETF net inflows. This forecast suggests an imminent rally and indicates the potential for an unparalleled bull market cycle.
Hot Take: A Short-Term Correction May Be on the Horizon
While Bitcoin has reached new all-time highs, there are signs that a short-term correction may be imminent. The rapid increase in prices, coupled with record Bitcoin inflows into accumulation addresses, indicates that the market may need to take a breather. Additionally, strong demand from ETFs highlights the growing interest in Bitcoin as an investment.
However, it’s important to note that cryptocurrency markets can be highly volatile, and price predictions should be taken with caution. It remains to be seen how the market will evolve in the coming days and weeks.
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