- In the previous week, bitcoin outperformed other cryptocurrencies in terms of digital asset investments.
- In spite of reaching $23,000, on-chain data indicated that there would be another BTC increase.
According to the influx of cryptocurrency funds after a week filled with swings and a weekend filled with greens, Bitcoin [BTC] surpassed other assets, CoinShares reported on 23 January. The largest digital investment group in Europe stated that inflows were very bullish in the area. The United States, on the other hand, slowed down in injecting money into the available investment instruments.
It's noteworthy that the inflow from the previous week was approximately $37 million, with the majority of it going to Bitcoin short-investment instruments. While $5.7 million was invested in long-term Bitcoin investment products, $25.5 million was invested in short-term products, with Switzerland and Germany being the top contributors.
Despite the reluctance in the United States, Bitcoin shorts accounted for 80% of trading in the area. The cause of the interest's fourfold increase over the previous week is not a secret. Investors found it very impossible to avoid looking at short-term advantages as BTC reached $23,000.
A change from the pessimistic circumstances?
Although many analysts said that Bitcoin was no longer in the bear market, Bitcoin documentation expert Cauconomy disagreed. According to his CryptoQuant Publication, on January 23, the Puell Multiple was leaving the danger zone.
The Puell Multiple is the ratio of daily Bitcoin issuance, expressed in dollars, to daily coin issuance during a 365-day period. Additionally, it signals a potential market peak, mid-cycle, or bearish scenario.
The Puell Multiple was barely approaching the start of the bull cycle, according to Cauconomy and CryptoQuant's statistics. This disproved the widespread optimism about the market's complete bullishness. The expert also advised caution, pointing out that additional price movement would be necessary to corroborate the circumstance.
The decreased demand for growth
A compelling argument was made for a further price increase by analyst Oinonen t in a different CryptoQuant market analysis. He produced a graphic (below) focused on retail demand and the Bitcoin halving while taking into account the present market dynamics and distribution cycles.
The analyst also pointed out that in previous cycles, a price increase typically came after a fee-to-reward ratio pre-halving. The fees-to-reward ratio had spikey tendencies given that the 2024 halving is only a year and a few months away. As a result, Bitcoin may be headed for another price spike.
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