$BTC sees profit taking around $70,000 amid stubborn bullish sentiment
On-chain data shows that more than 50% of Bitcoin supply remains inactive, a sign of strong confidence in the asset over the long term.
Bitcoin (BTC) fell to $69,200 on Tuesday morning on profit-taking after temporarily surpassing $70,000 on Monday evening. Price action across major tokens is mixed.
BTC prices move along with the US stock markets, reflecting risky bets in the market. Several stocks and meme tokens have surged more than 100% due to the apparent comeback of famous stock trader Keith Gill.
Crypto exchange Bitfinex said in a report on Monday that bitcoin's decline since March was likely driven by selling by long-term holders. However, blockchain data shows that this trend has stopped and investors are accumulating BTC.
On-chain analytics firm CryptoQuant told CoinDesk in a report on Tuesday that 50% of the long-term bitcoin supply is inactive, with no movement or change in holdings on tracked wallets. . This is seen as a sign of strong long-term confidence, which could indicate further price upside.
As a result, sentiment surrounding bitcoin's continued growth remains "stubbornly optimistic," with Singapore-based firm QCP Capital seeing an increase in trading activity.
Markets remain stubbornly optimistic despite negative headlines about Mt. Gox and the DMM hack last week, BTC surged above $69,000 in Asia,” QCP said in a livestream Monday evening. “This optimism is likely to continue as the market waits for the ETH spot ETF to bring new demand.”
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