In the past week, Bitcoin has gained 2.58% in value, rising from around $37,800 to nearly reaching $39,000, according to CoinMarketCap. This positive price movement has led to some notable developments that could attract investors.
Bitcoin Experiences Highest Profitability Level In Two Years
According to blockchain analytics firm IntoTheBlock, 81.35% of all Bitcoin holders are currently making a profit. This is the highest profitability level since December 2021 when Bitcoin was valued at over $50,000. The expectation of increased institutional demand due to the potential approval of a spot ETF could lead to investors increasing their Bitcoin holdings and driving up prices in the coming weeks.
Federal Reserve Chairman Jerome Powell’s statement suggesting no more rate hikes in the near future also bodes well for Bitcoin and other cryptocurrencies as it encourages investment in high-risk assets.
Bitcoin Network Fees Slashed By 50%
The Bitcoin network has seen a 50% decrease in total fees over the past week. This decline is attributed to a significant drop in transactions related to the Ordinals protocol, which allows the creation of non-fungible tokens (NFTs) on the Bitcoin network. High interest in Ordinals leads to high network fees, so this reduction benefits users.
As of now, Bitcoin is trading at $38,758 with a slight decline of 0.17% in the last hour. Its daily trading volume has increased by 4.97% and is valued at $20.37 billion.
Hot Take: Favorable Indicators Amid Market Volatility
While there are positive indicators for Bitcoin’s growth, it’s important to remember that the cryptocurrency market is influenced by various factors and remains volatile. It is recommended that all investors conduct thorough research before getting involved in the market.
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