On April 14th, capital letters made with Bitcoin (BTC) surpassed the new historic largest (ATH) of $872,000 million.
Carmelo Germany, Crypto-Analysts, Data Analytics Company On-chainThe fact that Bitcoin has a broken capitalized mark is being performed emphasizes that it is a powerful signal. “More investors are maintaining BTC, more capital is flowing into the network, and there are more and more long-term holders.
It is important to explain it at this point The capital letters created are indicators that allow you to estimate how much capital actually entered the market.
To calculate, measure by multiplying the price each BTC unit last moved (i.e. when you change your hand) by the amount of BTC for that transaction. The values for all these transactions are then added.
Unlike current BTC prices multiplied by all currencies in circulation, capital carried out focuses on effective value invested in accordance with actual activities of the blockchain.
In the following graph, we observe the comparison of capital letters (purple lines) and BTC prices (white lines) made.
The graph suggests that capital letters made have been constantly rising since the end of March. Shows a sustained entry of value into the market.
“If Bitcoin prices do not rise immediately and continue to move sideways, they could be interpreted as a period of price accumulation before explosive movements,” explains German.
Experts asked to pay attention, but the increase in capital “indicating greater reliability for both networks and assets, suggesting that they may not yet reach the top of the market cycle.”
The German analysis is contrary to the analysis of Ki Young Ju’s Cryptoquant director, who has been warning since the beginning of March that “the upward cycle is over.”
As reported by Cryptonotics, Ju made its predictions based on the data On-chain, It particularly emphasizes the evolution of capitalization, which has been created as an important indicator.
In this regard, he explains: “If the sales pressure is low, even small purchases can raise prices. Therefore, market capitalization – could rise significantly. However, if the sales pressure is high, even large purchases cannot move prices. For example, if Bitcoin cited around $100,000, the market moved in large quantities.”
Simply put, if capital is implemented to cause the market to stagnate or fall, it can indicate an entry point for capital without price rise.
Additionally, the CEO of Cryptoquant said: “Selling pressures can always go down, but historically, it seems unlikely that a short-term rebound will be possible, as actual return will take at least six months.”
Apart from the indicator On-chainAlso, we should not lose sight of the fact that macroeconomic factors also weigh in the market.
The main one is Donald Trump, a “commercial war” unleashed by the US president.
As reported by Cryptonotics, on April 2nd, Republican leaders announced mutual tariffs in dozens of countries, including China, Canada, the European Union and across Latin America.
However, Trump suspended several countries for 90 days, but increased taxes on Chinese products by up to 145%.
Meanwhile, the Asian giant’s authorities responded with increased tariffs of up to 125%, and have scrapped new retaliation that caused a ceasefire in the commercial conflict.
This gesture has calmed the market for digital assets Improved expectations for final tariff negotiations.
This was also reflected in the prices of the currency created by Nakamoto At, which increased 5% last week.
At the time of publication of this memo, the price of BTC is above $87,500, 20% below the 109,110 ATH.
This price rise reveals that BTC has the necessary conditions to become a shelter asset in times of economic uncertainty.
While BTC is rising, major US stock market indexes report an average fall of 2%.
According to Reuters, Dow Jones (DJI) fell to 38,205.01 to 937.33 points (-2.39%), S&P 500 (SPX) fell to 5,154.25 to 128.08 points (-2.43%), and NASDAQ (IXIX) lost 446.75 points (-2.75%).
Meanwhile, gold recorded an increase of over 7%, earning something new at $3,449.
For many investors, Digital currency is considered “digital gold.” Because of its similarity with the world’s most valuable assets.
As a rule, the supply of currency was limited to 21 million units, and its broadcast was cut every four years at an event known as half. This dynamic affects medium term prices.
Unlike MoneyFíat, BTC has not been devalued by central bank issuance and financial policies.
Another factor that attracts both small and large investors is their resistance to diversification and censorship. This prevents governments and banking institutions from blocking transactions.
Even BlackRock, the world’s largest asset manager, defines it as “unique diverse active,” emphasizing its potential as coverage in the context of economic and geopolitical uncertainty.
