Bitcoin Enters Early Bull Run as Inflows into Derivatives Exchanges Surge
CryptoQuant's analysis suggests that Bitcoin has emerged from a bear market and is entering an early bull run phase. According to the research institution, the cryptocurrency has started seeing increased inflows into derivatives exchanges, indicating a shift towards risk-on sentiment. Ki Young Ju, CryptoQuant's founder, stated on social media that Bitcoin had entered the early stages of a new bull market, noting similarities with past trends.
The analysis also points out that current market conditions are reminiscent of those preceding previous bull runs. Theophiluspep, a CryptoQuant researcher, noted that while Bitcoin is entering a bull run, there are still signs of potential short-term corrections. He pointed to high levels of profit taking, increased exchange inflows, and overbought conditions as indicators of a possible pullback.
Despite these concerns, the overall sentiment remains bullish. The past week saw significant price gains for Bitcoin, with a 22% increase in the past seven days, reaching a price of $78,716. Additionally, US investors have been buying into Bitcoin ETFs at an accelerated pace, with funds managed by institutions such as BlackRock, Fidelity, and Grayscale seeing inflows of over $1.9 billion.