Bitcoin remains above crucial demand levels despite its recent decline from all-time highs.
The CEO of CryptoQuant recently provided strong off-chain and on-chain statistics that reinforce Bitcoin’s position. The data shows that the capital on the Bitcoin network has risen to $1.03 trillion.
In a volatile market, Bitcoin’s ability to hold above critical levels provides stability. Investors and traders are watching to see if this new support will lead to a rebound or if market factors will push Bitcoin lower.
Bitcoin has had a great 2024, with a surge in price and important data showing the strength of the network. The data shows that Bitcoin’s status as a zone of value (SoV) is clearer than ever as the year comes to a close.
Using off-chain and on-chain data, CryptoQuant CEO Ki Young Joo revealed that the estimated capital held on the Bitcoin network has reached $1.03 trillion, an 85% increase from the previous year.
This increase suggests that Bitcoin is becoming a long-term investment rather than a speculative one. Joe stresses that the $2 trillion market cap is not the only factor. Add $1 to Bitcoin and its market cap will not increase by $1. Instead, we can estimate capital flow using off-chain and on-chain data.
Combining these metrics creates the SoV index, which measures Bitcoin’s real capital flow. This illustrates Bitcoin’s value and its growing status as a global store of wealth, with facts supporting its fundamental strength through 2025.
If Bitcoin breaks the $100k level and holds as support, it could signal a positive confirmation, possibly leading to a new market rally. If this holds, this psychological level will extend the rally.
However, if the bulls lose the important support level of $92,000 to $90,000, the market could fall further. If this support is broken, selling could continue, perhaps exploring lower levels.
These levels may decide the direction of Bitcoin in the short term. To understand the future of Bitcoin, keep an eye on these important areas as the market reacts to external influences.