Following a new CryptoQuant analysis we can have a clearer picture of the current Bitcoin market dynamics. While Bitcoin’s history is filled with dramatic price swings, things look calmer this cycle. The largest drop we’ve seen so far was around 30% back in August, which is relatively small compared to past cycles. Interestingly, the current market doesn’t show signs of a major shift in momentum.
This means the current upward trend seems to be intact, even though smaller corrections can still happen. It is is an important point to understand. Waiting for a big drop to buy might leave you chasing higher prices, but being too aggressive when the price is climbing could also be risky.
Current Market Dynamics
Several factors suggest the market is stable but could still see short-term corrections. For starters, Bitcoin ETFs (exchange-traded funds) are helping stabilize the market by drawing in institutional interest. The Coinbase premium, which reflects higher demand on that platform, remains strong and points to consistent buying interest from U.S.-based investors.
Another positive signal comes from the SOPR (Spent Output Profit Ratio) metric, which shows if people are selling Bitcoin at a profit or a loss. This metric has cooled off recently, which suggests the market is not overheating.
Funding rates, which reflect trader sentiment, dropped after a sudden shake-out last week, indicating caution among traders. Meanwhile, Bitcoin miners, who generate new Bitcoin through the mining process, don’t seem to be in a rush to sell their holdings, signaling confidence in future price stability.
Another positive sign is the flow of stablecoins into spot exchanges. Stablecoins are cryptocurrencies tied to real-world currencies like the U.S. dollar, and they’re often used to buy Bitcoin. Right now, stablecoin flows are higher than they’ve been all year, suggesting buyers are gearing up to enter the market.
Times are good. While small corrections can occur anytime, there’s currently no clear evidence of a major reversal in Bitcoin’s momentum at the moment. To stay updated, keep following us here at HowToBuyBitcoin.org.