Is the Bitcoin Supply Shortage a Sign of the Beginning of a New Rally
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- The demand in the spot market is fueling Bitcoin’s bullish momentum.
- BTC has experienced a decrease of 2.46% within the last 24 hours.
Over the past month, Bitcoin [BTC] has shown a strong upward trend, achieving a new all-time high of $108,268.
This upward trajectory has prompted significant discussion amongst key stakeholders regarding its underlying causes. Analysts at CryptoQuant have identified increasing spot market demand as the primary driver behind BTC’s price surge.
The rise in Bitcoin’s spot market demand is significant
An analysis by Avocado on-chain suggests that Bitcoin’s bullish cycle might be driven by either futures or spot markets.
The bull run in 2023 was first driven by activity in the futures market, which was subsequently followed by increased activity in the spot market that propelled prices higher.
Source: CryptoQuant. p > div >
The performance of both the spot and futures markets saw a prolonged decline from March to September 2024. However, October brought an uptick in trading volumes for both types of markets. This increase contributed to new all-time highs for Bitcoin’s price. p >
Though there has been a decline in activity within futures over recent months, growth persists within the spot market sector. The rise in demand here indicates that speculation surrounding future contracts is diminishing while buying pressure continues to strengthen within traditional transactions. p >
This potentially means that futures will experience cycles marked by liquidations and overheating again before leading to further increases in BTC pricing; thus prompting additional capital movement towards spots.’ p >
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Source: CryptoQuant Moreover,”Bitcoin stock-to-flow ratio grew from”37k”up-to”46.5k.”This boost signifies escalating scarcity implying supply drops whilst consumer inclinations point upwards resulting inevitably enhancing asset valuation amid diverging conditions exhibited previously enough placing greater emphasis entirely concerning B2B metrics associated holistically encompassing industry evolution!!.
When buyer influx magnitude raises unit acquisition fees suffice adequately—this chain reaction remains fundamental base characteristics defining overall crypto economics right now!。
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