Bitcoin and other major cryptocurrencies are currently experiencing a recovery phase after a recent dip in prices that occurred last week. This downward trend was primarily influenced by macroeconomic factors, causing Bitcoin’s price to drop by 4% and hitting a multi-week low of $112,000. Arthur Hayes, co-founder of BitMEX, even warned that ongoing macroeconomic pressures could potentially push BTC back towards the $100,000 range.
However, Maksym Sakharov, co-founder and CEO of WeFi, believes that this correction was a natural consequence of an overheated market. He explained that Bitcoin had been on an impressive bull run over the past month, culminating in a new all-time high. Therefore, the subsequent price dip was almost expected as the market needed to take a breather before continuing its upward momentum.
Fortunately, the market is already showing signs of strength with Bitcoin and other major assets such as Ethereum, Solana, and BNB all beginning to recover and exhibit gradual rebounds. Notably, XRP has stood out among the top 10 digital assets, climbing more than 5% in the last 24 hours to surpass the $3 mark after briefly trading below it over the weekend.
On-chain data analysis further supports the optimistic outlook for Bitcoin’s long-term future. Abramchart, a contributor at CryptoQuant, emphasized that Bitcoin’s bull run is far from over as long-term holders continue to display confidence in the cryptocurrency. The Net Unrealized Profit/Loss (NUPL) indicator has remained above 0.5, indicating that Bitcoin is still profitable for many investors.
Additionally, Darkfost, another analyst, highlighted that demand for Bitcoin remains strong, with addresses accumulating Bitcoin without selling increasing. On average, these addresses have accumulated around 50,000 BTC over the past month, showcasing sustained buying behavior and robust demand for the asset.
Furthermore, a chart tracking “apparent demand” compares new Bitcoin issuance against the volume of coins inactive for over a year, revealing a positive trend. Approximately 160,000 BTC have been absorbed by long-term holders over the past 30 days, further confirming the market’s resilience.
In conclusion, these patterns suggest that Bitcoin’s recent correction is simply a part of the broader market cycle. Sakharov remains confident that Bitcoin is poised to reach new highs driven by structural demand and long-term investor conviction. The ongoing recovery in prices and the continued accumulation of Bitcoin by long-term holders further strengthen the belief in Bitcoin’s long-term growth potential.