- Bitcoin investments were worth $1.97 billion, while ETH accounted for $69 million.
- Short-term holders are not convinced about Bitcoin’s price rise.
$2 billion! That was the value of the total investments poured into crypto products last week, CoinShares revealed. According to the report Bitcoin [BTC] investments were worth approximately $1.97 billion.
Ethereum [ETH] also added to the capital, with a contribution of $69 million. This was the highest inflow the altcoin had recorded since its peak in March.
BTC is not completely back yet
For those unfamiliar, CoinShares publishes the report every week. The publication aims to cover investments related to digital assets, including cryptocurrencies.
Over the past week, both Bitcoin and ETH have been in the spotlight. With dominance restored, it seemed that investors had confidence in the short- and long-term potential of the coin.
Source: CoinShares
However, CoinShares head of research James Butterfill revealed a few reasons for the focus on Bitcoin. According to Butterfill, the positive macro data announced last week played an important role. He wrote That,
“We believe this turnaround in sentiment is a direct response to weaker-than-expected US macro data, highlighting expectations for a rate cut on monetary policy. The positive price action saw total assets under management (AuM) rise above the $100 billion mark for the first time since March this year.”
Despite the improvement, BTC has been trading sideways for most of the past seven days. At the time of writing, the price of Bitcoin was $69,373.
AMBCrypto looked at the STH-NUPL to assess the behavior of short-term investors. STH-NUPL stands for Short Term Holder-Net Unrealized Profit/Loss.
The price may continue to move sideways
This metric takes into account the sentiment of BTC holders who have held the coin for less than 155 days. At the time of writing, the reading of the metric was 0.085 and was in the heap zone (orange).
This condition meant that most short-term holders had no confidence that Bitcoin’s price would rise in the short term. Therefore, the demand for the coin may not be high, indicating that the price will continue to move sideways.
Source: Glassnode
Regarding price, AMBCrypto analyzed IntoTheBlock’s Bulls and Bears indicator. This metric tracks the activity of addresses that bought or sold 1% of trading volume in the last 24 hours.
If the numbers point in favor of bulls, it means that most of the volumes were buy orders. On the other hand, bearish dominance indicates an increase in selling pressure.
Read Bitcoin’s [BTC] Price forecast 2024-2025
For Bitcoin, the Bulls and Bears indicator at the time of writing was zero. Therefore, this neutrality could lead to BTC continuing to trade within a tight range in the meantime.
Source: IntoTheBlock
It seems like a bearish market situation could send BTC to $68,000. However, if the market improves, the coin could rise back to $71,000.