Summary:
• Bitcoin [BTC] surged past $28,000 to its best performance since June last year, increasing its value by 25% since last week and 15% on a month-to-date (MTD) basis.
• Total short liquidations reached $366 million over the last week, while Bitcoin’s MVRV ratio hit 1.405 and its circulating supply held in profit rose above 70%.
• Bulls returned to the crypto market with long positions taken for the coin increasing, indicating a possible bullish cycle without triggering an intense sell-off.
Bitcoin Price Surge
Bitcoin [BTC], the largest cryptocurrency by market cap, surged past $28,000 during Sunday trading hours to post its best performance since June last year. As per CoinMarketCap, BTC increased its value by 25% since last week, while on a month-to-date (MTD) basis the king coin grew by 15%. The stupendous performance came amidst the crisis induced by the collapse of big institutions like Silicon Valley Bank and Signature Bank, with more investors shifting funds into the crypto economy. BTC’s upswing pushed global crypto market capitalization to $1.16 trillion with a marginal increase over the last day.
Bull Market Signals
The sharp uptick in BTC’s price intensified discussion around the onset of the crypto market’s bull cycle. As per CryptoQuant, Bitcoin’s MVRV ratio hit 1.405 at press time. Generally, when the ratio is above 1 and below 3.7 (overvalued market), it signals a bull market phase. CryptoQuant analyst Saad4h stated that historically when this ratio reached this value it was always followed by at least a 50% increase in BTC’s price. Furthermore; The proportion of Bitcoin’s circulating supply that is held in profit soared to over 70%, well over its 365-day moving average which has been seen as evidence of a new bull cycle without triggering an intense sell-off..
Short Liquidations
The total number of short liquidations swelled to about $366 million over the last week as per Coinglass data which is similar trend witnessed at start of 2023 when BTC made strong upward move after lows of post FTX crisis.. The rally followed an announcement by Federal Reserve talking about coordinated effort with central banks from other countries to enhance provision U S dollar liquidity globally resulting investors shifting more funds into crypto economy hence pushing prices higher..
Long Positions Increase
The surge in BTC prices also resulted in increase in number of long positions taken for coins as per Coinglass data reflecting shift towards greed sentiment among community further strengthening expectations of sustained bull run..
Conclusion
Overall sentiment among investors remains positive as bulls return and how! The sharp rise in prices along with various metrics signaling bullish trends indicate that we could be entering new era for Bitcoin and cryptocurrency markets making now good time for investors take their positions before prices go even higher..