By Omkar Godbole (unless otherwise indicated)
Bitcoin (BTC) outlook looks bullish even after the biggest cryptocurrency has dropped to under $3 trillion, dropping the mayor’s market capitalization, with the biggest cryptocurrency back from Friday’s high of $98,000 to $95,000.
In the signal, US registered spot Bitcoin ETFs are rapidly absorbing supply. Last week, 11 ETFs registered a cumulative net inflow of $1.8 billion, equivalent to over 18,500 BTC, more than six times the mined 3,150 btc. (look The chart of the day))
On-chain activity has also recovered, suggesting bullish outlook. According to Data Source IntotheBlock, the number of active BTCs exceeded 800,000 on Sunday. “Although it is still far from high, rebounds show a clear pickup of engagement on the chain.
As for Defi, the number of on-chain transactions, including wrapped Bitcoin (WBTC), has doubled since January, continues to increase, indicating investors’ interest in Bitcoin-backed diversified finance.
Still, long-term holders could bolster sales as prices could be close to $100,000 and the rate of growth could drop, an analysis from GlassNode shows.
In the case of Ether (ETH), data from encryption shows that the number of ETHs held by so-called accumulation addresses increases by 22% in two months, increasing ETH of 19.04 million. Ethereum is set to implement a Pectra upgrade on Wednesday to increase scalability, ease of use and validator efficiency, double the volume of BLOB data per block, and reduce the cost of Layer 2 protocols.
On the Macro Front, the Federal Reserve interest rate decision is expected to be paid this Wednesday. Short-term inflation concerns highlighted by survey data limit the Federal Reserve’s ability to ease, and central banks may oppose calls for interest rate cuts, according to ING. However, the bank said the recent softening of GDP suggests a range of mitigation in the second half.
“Volatility is coming,” PowerTrade pointed to the Federal Reserve decision, pointing to the US ISM Services PMI and Bank of England fee decisions as catalysts this week. Keep alerts!