Bitcoin has surged above $97,000, signaling a shift in how capital interacts with the crypto asset class. This climb, reaching $97,860, marks the highest price since November. The on-chain metrics supporting this upward movement suggest renewed institutional interest meeting a decrease in selling pressure.
The increase in spot bids and whale dominance, coupled with a reduction in profit-taking, has contributed to this rally. The influx of over $1.5 billion in Bitcoin ETF inflows has driven market demand, indicating a shift towards spot buying dominated by larger entities rather than retail investors.
Moreover, the market has seen a decrease in realized profit and a low Value Days Destroyed indicator, suggesting that long-term holders are holding onto their assets. This lack of selling pressure combined with positive futures activity and a favorable macroeconomic environment has further fueled Bitcoin’s rise.
The recent short liquidation events and a reset in options open interest have also played a role in propelling Bitcoin higher. These factors, along with evolving US policy discussions around crypto, have created a conducive environment for continued growth.
Looking ahead, Bitcoin’s ability to sustain this momentum will depend on breaching key thresholds, such as the Short-Term Holder cost basis around $99,100. Overcoming overhead supply zones and maintaining positive ETF flows will be crucial in determining whether the rally can continue or if it will face resistance and exhaust in the near term.
