Bitcoin remains on an upward trajectory despite its recent price fluctuations, although some analysts believe that the cryptocurrency may have reached a temporary high, especially with the upcoming U.S. elections in focus.
Copper Research analysts pointed out in their recent report that on-chain data and price movements indicate that Bitcoin might have hit a short-term peak.
Their analysis shows that 98% of wallet addresses are currently profitable, a significant increase from 75% in the past. Historically, such high profitability levels have often led to selling activity as investors look to capitalize on their gains.
They explained, “When we see large shifts in the market, the trend tends to reverse when many addresses show profits, leading to increased selling pressure. This suggests that Bitcoin might be at a temporary high, with potential continued selling.”
Moreover, the analysts noted that while there have been strong inflows into spot Bitcoin ETFs, overall interest among investors has been lukewarm.
Despite Bitcoin briefly surpassing the $69,000 mark for the first time since July, they observed that growth indicators have been lacking. Earlier this year, the market experienced significant daily growth in ETF investments, which seems to be missing now.
Bitcoin may not have reached its peak in the current market cycle, according to a recent analysis by crypto analytics firm Alphractal.
BlackRock’s iShares Bitcoin Trust (IBIT) has officially crossed the 700,000 BTC mark, reinforcing its position as one of the fastest-growing exchange-traded funds in financial history.
Bitcoin may be gearing up for a significant move as its volatility continues to tighten, according to on-chain insights from crypto analyst Axel Adler.
Two major developments are converging in July that could shape the future of Bitcoin in the United States—both tied to President Trump’s administration and its expanding crypto agenda.