This is a period when many wallets profit, and price swings are common. In May, 10 days have already shown high profits and strong movement. Still, Bitcoin has not moved past its recent top price level.
Most Bitcoin Wallets Are in Profit, But Traders Are Cautious
On May 13, the flagship cryptocurrency closed at $104,119. At that point, 99% of Bitcoin wallets were in profit. This usually indicates a strong interest and leads to a price increase.
However, a recent CryptoQuant report revealed that futures market traders are not confident. The report highlighted that more people are betting on the price going down than up.
This is measured by a number called “cumulative net taker volume,” which has stayed negative since Bitcoin returned above $100,000. Despite strong support from long-term holders, the price has remained between $94,000 and $104,000.
Spot and Derivatives Markets Disagree
There is now a clear difference between what is happening on the blockchain and what is happening in the futures market.
On the blockchain, Bitcoin looks strong. However, in the futures market, many traders place short bets, which puts pressure on the price.
This has also caused Bitcoin’s price to become very stable. In fact, according to VanEck’s head of digital asset research, Matthew Sigel, Bitcoin’s 30-day volatility is now lower than gold’s for the first time. The BBR/GC1 ratio is now 0.857, the weakest in 10 years.
Bitcoin Awaits a Futures Market Shift
Meanwhile, periods of low volatility like this often come before big price changes. However, the futures market must change for Bitcoin’s price to climb. More traders need to start betting on price increases.
It is important to note that the global economy and the amount of money available in the market also affect Bitcoin’s volatility and potential price movements. According to CoinMarketCap data, Bitcoin’s price is currently trading at $102,728, down by 1.08% in the last 24 hours.
Industry leaders and institutions have provided different forecasts for Bitcoin’s price trajectory. In April, Geoffrey Kendrick, head of digital assets research at Standard Chartered, predicted that the leading crypto asset could reach $120,000 by the second quarter of 2025.
Meanwhile, Cathie Wood, CEO of ARK Invest, believes Bitcoin could reach $1 million before 2030, thanks to the growing interest from big investors.
The post Analysts Says Bitcoin Shows On-Chain Strength, But Price Remains Stuck appeared first on BitcoinLinux.com.
