Bitcoin October Trend Review
The price of Bitcoin ($BTC) has risen to $35,280 USDT, marking the highest closing price since the Q2 2022. This breakthrough indicates a possible trend reversal, having surpassed the consistent resistance around the $30,000 mark.
Recently, there has been an increase in institutional demand for cryptocurrency investment products. Reports from CoinShares show a net inflow of over $300 million, recording the highest level since Q3 2022. Consequently, the CME has seen open interest surpass $3.54 billion, showcasing a strong performance in the Bitcoin futures market.
However, distorted information regarding the Bitcoin spot ETF and money laundering issues related to Hamas have been slowing down the overall investment momentum. The market anticipates potential volatility due to macro issues, including decisions from the FOMC
On-Chain Insights into Bitcoin
The holdings of Bitcoin by exchanges are presently in a consolidation phase, and in accordance with the price rise, the USD-denominated assets on the exchanges are demonstrating the highest levels since Q3 2022.
Commonly, a reduction in the Bitcoin holdings of exchanges is interpreted as a decline in the volume of Bitcoin transacted in the market. Most on-chain analysts assert that this condition is relatively conducive to eliciting a price ascent. Conversely, an increase in the exchanges' Bitcoin holdings is frequently perceived as a precursor to a probable market depreciation.
Nonetheless, the recent trends indicate a diminishment in the correlation between these ascents and descents. With the exacerbation of exchanges' fiscal soundness issues, an increment in the exchanges’ Bitcoin holdings may paradoxically enhance the market participants' trust in the exchanges, potentially bestowing a positive momentum upon the market.
Based on the UTXO Age Band of Bitcoin, the recent trends of Bitcoin holders are showing a distinct difference. Short to mid-term holders of up to 6 months are predominantly buying, influenced by the recent rise in value, while long-term holders between 6 to 24 months, who persisted through the crypto winter, appear to be predominantly selling as they emerge from loss positions.
However, as previously mentioned, the influx of institutional investors seems to be absorbing the selling pressure from the 6 to 24-month long-term holders, making the impact on price appear limited.
