Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

Cryptocurrencies

Bitcoin On-Chain Health Remains ‘Net Positive’: ARK Invest Report

Source Newsbtc

Although Bitcoin (BTC) on-chain health remains net positive, from a price perspective two crucial support levels must be maintained for a continued bullish uptrend, notes ARK Invest in its latest monthly report.

Bitcoin’s Healthy On-Chain Metrics, What Does It Mean?

In its report, ARK Invest posits that Bitcoin requires some upside if its market structure is to be maintained. The report notes that in August 2024, BTC’s price slid by 8.7% to $58,972. The leading digital asset was also unable to overcome its 200-day moving average, making two key support areas at $52,000 and $46,000 critical for its bullish momentum.

The report states that despite the temporary headwinds faced by Bitcoin, its on-chain health remains ‘net positive.’ Essentially, the Bitcoin network is net bullish across different on-chain metrics such as network security, network usage, and holder behavior.

Bitcoin’s long-term holder supply, or BTC held for more than 155 days by holders, is up 3.3% month-over-month (MoM) and down a marginal 0.23% year-over-year (YoY). In addition, Bitcoin’s locked supply has increased in both MoM and YoY terms by 0.58% and 1.82%, respectively.

Bitcoin’s transaction volume has tumbled by 24.5% MoM and 2.3% YoY, a bearish on-chain indicator. However, Bitcoin’s bullish on-chain metrics overshadow the one bearish indicator, allowing its on-chain health to remain net positive.

Another key performance indicator strengthening ARK Invest’s bullish stance on Bitcoin is its short-to-long liquidation dominance. Essentially, this metric measures short-term liquidations relative to long-term liquidations over the last 90 days, and found that it’s at its lowest since Q2 2023.

Bitcoin ETF Investors Underwater At Large

The report highlights that at the end of August 2024, the estimated cost basis of US spot exchange-traded-fund (ETF) participants was higher than BTC’s price, hinting that the average ETF investor may be at a loss. The higher estimated cost basis of US spot ETF participants compared to its price can be confirmed from the chart below.

The US Securities and Exchange Commission (SEC) approved spot Bitcoin ETF earlier this year, which made it easier for institutional and retail investors to gain exposure to the world’s largest cryptocurrency through a compliant investment product.

Bitcoin ETFs are witnessing unprecedented interest from institutional investors. Specifically, Wall Street titans such as Goldman Sachs and Morgan Stanley have poured millions of dollars into Bitcoin ETFs. Conversely, Ethereum ETFs haven’t yet piqued institutional interest at comparable levels.

At press time, Bitcoin trades at $57,836, up a minimal 0.2% in the past 24 hours. BTC’s total market cap stands at $1.14 trillion.

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

Dollar holds above 100 near a 3-month high — three Fed speakers and a $69 billion auction land tonight The dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.

Author Suzie

Sep 22, Tue

The dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.

October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changed Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.

Author Irene Q.

Sep 23, Wed

Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.

Memory chips surge, Nasdaq notches a second straight record close — why the Dow fell 185 points anyway Micron gained 5%, SanDisk 6.8%, Seagate 4% and Western Digital 3% as the memory complex led the Nasdaq Composite to a second consecutive record close of 27,244.28. But the Dow fell 185 points as JPMorgan, Wells Fargo and Schwab slid more than 3% each — a split tape that says more about positioning than about the economy.

Author Irene Q.

Sep 23, Wed

Micron gained 5%, SanDisk 6.8%, Seagate 4% and Western Digital 3% as the memory complex led the Nasdaq Composite to a second consecutive record close of 27,244.28. But the Dow fell 185 points as JPMorgan, Wells Fargo and Schwab slid more than 3% each — a split tape that says more about positioning than about the economy.

Gold Price Forecast: XAU/USD drifts toward $4.300 with bears gaining traction Gold (XAU/USD) retraces Tuesday’s gains on Wednesday and drifts lower, approaching the $4,300 area as the US Dollar Index (DXY) rallies further amid high US Treasury yields.

Author FXStreet

Sep 23, Wed

Gold (XAU/USD) retraces Tuesday’s gains on Wednesday and drifts lower, approaching the $4,300 area as the US Dollar Index (DXY) rallies further amid high US Treasury yields.

US input costs rose at the fastest pace in four years — the September flash PMI beat is an inflation story, not a growth story US September flash PMIs came in far above expectations, with the composite at 58.4, a five-year high. But the detail that moved markets was input cost inflation at its fastest since October 2022, driven by fuel, transport and supply shortages. Brent is back above $100 and the 10-year Treasury yield has hit its highest since 2007.

Author Suzie

20 hours ago

US September flash PMIs came in far above expectations, with the composite at 58.4, a five-year high. But the detail that moved markets was input cost inflation at its fastest since October 2022, driven by fuel, transport and supply shortages. Brent is back above $100 and the 10-year Treasury yield has hit its highest since 2007.

Popular Symbols