Bitcoin Resilience: 90% in Profit Amid Fed Liquidity Boost
Bitcoin Holds Strong: Buyers Step In During Dip
Bitcoin's brief drop to $113K triggered significant spot buying, suggesting underlying market strength. Data from Binance shows a $7.6 billion volume spike during the price pullback, indicating substantial investor interest.
Despite the volatility, a significant majority of Bitcoin holders remain profitable. Coupled with increasing Federal Reserve liquidity, the market conditions may be ripe for a potential upward move.
Key Points:
- Strong Buying Activity: Binance recorded $7.6 billion in Bitcoin spot volume during the recent price dip.
- Profitability: Over 90% of Bitcoin's supply remains in profit.
- Fed Liquidity: Federal Reserve liquidity has increased to $6.17 trillion, potentially boosting demand for risk assets.
Whale Accumulation or Panic Selling?
The substantial volume on Binance as Bitcoin dipped suggests more than just panic selling. The scale of trading points to potential large-scale buying behind the scenes, similar to patterns observed during previous local bottoms, such as the one on June 22nd.
Fed's Liquidity Injection
The U.S. Federal Reserve's net liquidity has climbed to $6.17 trillion, reaching its highest level in months. This increase in liquidity often correlates with increased investment in risk-on assets, including cryptocurrencies. Historical data shows that similar liquidity injections in late 2023 and early 2024 preceded bullish trends in the Bitcoin market.
This liquidity boost, combined with the strong spot buying volume, creates a potentially favorable environment for Bitcoin to not only recover but potentially experience another breakout.
Majority Still Profiting
Despite the recent price fluctuations, Bitcoin's fundamentals appear robust. Currently, 91.6% of the BTC supply remains in profit. Historically, maintaining this level of profitability has often preceded periods of price consolidation before major upward movements.
This suggests that investor confidence remains strong, and with the added support of spot volumes and increased liquidity, Bitcoin could be poised for a rebound rather than a further decline.