Bitcoin dominance has gradually risen beyond 56 percent following the poor performance of the spot Ether ETFs in the past three days.
The total cryptocurrency market cap surged over 3 percent in the past 24 hours to about $2.51 trillion, fueled by the mild Bitcoin (BTC) price pump. The flagship coin gained over 4 percent in the past 24 hours to briefly reach a daily high of $67,452 on Friday during the early Asian session. Consequently, Bitcoin price has signaled bullish momentum after consistently closing above the 50 and 200 daily Moving Averages (MAs).
Moreover, the Bitcoin dominance had its highest daily close of around 56.50 percent on Thursday.
According to crypto analyst Benjamin Cowen, Bitcoin dominance could easily reach 60 percent in the coming months before initiating a much-anticipated reversal to trigger the macro altseason.
Bitcoin Whales Increases Accumulation Rate
Having identified the flagship coin as a reliable digital gold, more institutional investors are pouring more money into Bitcoin and its related products. For instance, Marathon Digital Holdings Inc (NASDAQ: MARA) announced it has adopted a full Bitcoin plan on Thursday after acquiring $100 million worth of BTCs, thus joining MicroStrategy Inc (NASDAQ: MSTR) and other public firms.
According to on-chain data provided by CryptoQuant, long-term Bitcoin holders have aggressively accumulated more coins in the past year. Consequently, the supply of Bitcoin on centralized exchanges has gradually declined in the recent past to a multi-year low.
Long term #Bitcoin holders 3-5y are increasing massively
They are not selling 💪🏽
Credits to @ki_young_ju pic.twitter.com/iDWBkVocFv
— Quinten | 048.eth (@QuintenFrancois) July 25, 2024
According to on-chain data analysis from Spot On Chain, a smart whale accumulated 1,147 Bitcoins, worth over $75 million, from Binance in the past nine days. Notably, BlackRock’s IBIT was the only spot Bitcoin ETF issuer that registered a positive cash inflow of about $70.75 million on Thursday.
Meanwhile, more investors diversified their crypto portfolio through the recently approved spot Ethereum ETFs. Apart from Grayscale’s ETHE, which registered a net cash outflow of about $346 million, the majority of the spot Ether ETF issuers reported positive cash inflows on Thursday.
Economic Outlook
Although the correlation between Bitcoin and the stock market has significantly declined in the past few months, the recent stock market crash has impacted the entire crypto industry. Moreover, Bitcoin is highly adopted by the same institutional investors that have invested in the stock market.
Nonetheless, the crypto liquidity is expected to significantly improve in the coming months amid the upcoming US general election. Additionally, the US Fed could initiate highly anticipated interest rate cuts similar to China, the Bank of Canada, and the European Central Bank (ECB).
Midterm Price Prediction
Bitcoin price is on the cusp of retesting its all-time high above $73K in the near term after forming higher highs and higher lows in the daily time frame. Moreover, Bitcoin price signaled a potential bullish breakout as the one-hour Relative Strength Index (RSI) broke out of a falling trend.
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