Bitcoin Holds Firm Near $86K as Crypto Market Continues Recovery
Bitcoin has continued its upward trend, holding near $86,000 on Wednesday after breaking out to new highs. The cryptocurrency has climbed 47% from its early-July low, and Bitfinex reports that holders are only realizing modest profits.
The adjusted SOPR (Spending Output Profit Ratio) indicates that investors are not yet panicking or selling their assets en masse. In fact, the market is showing signs of a recovery, with the total crypto market capitalization reclaiming $3 trillion and altcoin market value reaching its highest level since January.
Despite this positive momentum, there are still some cautionary signals flashing. Santiment recorded the strongest bullish social sentiment since December 2024, but also noted that it is a multi-year FOMO (fear of missing out) peak. The U.S. dollar has also been rising in value, which could have a negative impact on cryptocurrency prices.