Bitcoin (BTC) Ends its Losing Streak, and Inflows Grow
On Sunday, Bitcoin (BTC) stopped a 9-week losing streak as a green weekly candle showed on the bitcoin chart. The favourable weekly finish kicked off a green start to the new week on Monday, with advances in the crypto market.
Monday’s market bounce was broad, with bitcoin, Ethereum (ETH), and numerous altcoins recording 24-hour gains of more than 5%. Cardano (ADA) was the best performer among the top ten cryptocurrencies by market capitalization. It is up by 9 per cent for the day at 15:00 UTC to USD 0.611.
BTC was trading at USD 31,577, up 6% in the previous 24 hours. ETH was trading at USD 1,897, up almost 6% in the same time frame.
The gains occurred after the bitcoin chart printed its first green candle in 10 weeks on Sunday, concluding the coin’s record-long losing skid.
BTC presently confronts technical resistance around the USD 31,500 to USD 32,000 mark, according to Marcus Sotiriou, an analyst at crypto broker GlobalBlock. If the price can hold beyond this level, continuation to the upside may be expected.
Shorts are Liquidated
According to Coinglass statistics, Monday’s surge occurred at the cost of traders who had prepared for increased selling in both BTC and ETH futures.
In the bitcoin derivatives market, close to USD 35 million in BTC shorts were liquidated 12 hours from midnight to noon on Monday (UTC time), a one-week high.
Meanwhile, short ETH position liquidations hit a one-week high on Monday, with USD 23 million liquidated across exchanges over the same period.
Miners are Selling
Notably, the price increase for critical currencies today coincided with reports that Bitcoin miners have begun selling previously hoarded coins to meet operational costs.
Miners remitted around BTC 195,663 to exchanges in May, the largest monthly gain. The value of bitcoin supplied to exchanges is USD 6.3 billion at an average monthly price of USD 32,000 per coin.
Riot Blockchain, a Bitcoin miner, has been stockpiling bitcoin on the gamble that prices will continue to rise.
Selling was required for smaller miners, such as the privately-held Cathedra Bitcoin Inc., to ease an alarming financial position.
Money Inflows Increase
While miners sold, other investors took advantage of the low pricing last week to put additional capital into crypto-backed ETFs.
Although most crypto assets are trading in a restricted range, USD 100 million was added to crypto investment funds last week. The result is higher than the USD 87 million inflows witnessed the previous week.
As is customary, funds backed by Bitcoin attracted the most inflows, reaching USD 126 million throughout the week (it was USD 69m a week earlier). At the same time, ETH-backed funds had the most withdrawals, with USD 32 million departing net (it was almost USD 12m a week earlier).
According to the latest on-chain digest from crypto exchange Kraken, the crypto market is still adverse. On-chain statistics reveal a continuous fall in crypto network demand in May.
Nonetheless, Bitcoin outperformed altcoins in terms of both price and on-chain characteristics. According to the research, BTC was the best or second-best performer in every on-chain indicator, with the slightest increase in circulating supply.
According to the paper, indicators such as Bitcoin’s Spent Output Profit Ratio (SOPR) and Market Value to Realised Value (MVRV) z-score have continued to reflect oversold circumstances. A return to neutral conditions for these indicators would indicate that network demand is returning.