Bitcoin (BTC) may be gearing up for a bull run, according to new data from market intelligence firm Santiment. The firm has identified three key signals that suggest a potential uptrend for the leading cryptocurrency.
One of the indicators highlighted by Santiment is the average returns of wallets holding BTC. When these returns are below 0%, historical data indicates that it could be a strong time to accumulate more Bitcoin. Currently, the average returns of wallets active in the past 30 days are sitting at around -2.9%, signaling a potentially favorable buying opportunity.
Moreover, Santiment notes that older BTC tokens are in circulation at a healthy rate, which often precedes a market rally. The movement of dormant tokens suggests that stagnant coins are circulating actively, a trend typically observed during bullish periods. In contrast, bear markets tend to see prolonged periods of dormancy among tokens.
Lastly, Santiment points to the amount of Bitcoin held on exchange platforms as another positive sign for a potential price increase. The supply of BTC on exchanges has remained relatively low following a significant outflow of coins into cold wallets towards the end of 2024. Currently, only 7.6% of Bitcoin is held in known exchange wallets, compared to 9.92% six months ago.
At the time of writing, BTC is trading at $98,427, showing a slight decrease over the past 24 hours. Despite the short-term dip, the on-chain metrics analyzed by Santiment suggest that Bitcoin could be poised for a bullish movement in the near future.
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In conclusion, the signals identified by Santiment offer a positive outlook for Bitcoin’s price trajectory, indicating a potential bull run on the horizon. As always, it’s essential for investors to conduct their research and stay informed about market trends before making any investment decisions.