- The profitable share of Bitcoin’s supply has crossed the 365-day moving average.
- Experts at CryptoQuant see this as a positive indicator of rising investor optimism.
- Bitcoin’s profitable share reached 86.4%, indicating more investors are in profit.
- A recent reduction in the Federal Reserve’s interest rate has boosted Bitcoin’s value.
- Bitcoin price surpassed $64,000 on September 23, 2024.
Experts Predict Bitcoin Growth Amid Rising Profitable Supply Share
On September 22, 2024, the profitable share of Bitcoin’s supply crossed the 365-day moving average. According to CryptoQuant experts, this development signals growing optimism among investors. This notable shift was reported by The Block, referencing data from CryptoQuant, suggesting a potential reduction in selling pressure and a subsequent rise in Bitcoin’s value.
Increase in Profitable Supply Share
As illustrated in the provided chart, the profitable share of Bitcoin’s circulating supply has reached 86.4%. This indicates that a significant portion of Bitcoin was bought at prices lower than the current market value. CryptoQuant experts note that this increase signifies a growing number of investors are turning a profit.
Supporting Metrics from Glassnode
Data from Glassnode confirms this upward trend, which has been evident since the beginning of September 2024. Experts attribute this positive momentum to the Federal Reserve’s recent interest rate cut. On September 18, the regulator reduced the interest rate for the first time in a long period, which led to a positive market response. Bitcoin’s price surged, breaking the $64,000 level on September 23.
Expert Analysis by CryptoQuant
Julio Moreno, an expert from CryptoQuant, commented on the significance of the profitable share crossing the 365-day moving average curve: “This inflection point is typically associated with further price increases.”
Current Market Status
At the time of writing, Bitcoin is trading below $63,000, showing a slight pullback from its recent high. However, the overall market sentiment remains optimistic due to the recent positive developments.
In summary, the crossing of the 365-day moving average by Bitcoin’s profitable share is a promising indicator of potential price increases. This development, coupled with the Federal Reserve’s interest rate cut, has created a favorable environment for Bitcoin investors. As the market continues to respond to these positive signals, the outlook for Bitcoin remains strong.
