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NEW YORK – The stock hit an 18-month high, marking a significant 120% year-to-date gain, but the widespread fear of missing out (FOMO) typically seen in bull markets has not subsided. not yet fully materialized. Look into Bitcoin’s analysis reveals that despite an increase in small wallet activity, re-engagement of short-term traders within the network is still minimal.
Recent observations show that younger bitcoins are starting to move more frequently on-chain, suggesting a change in market dynamics. Look Into Bitcoin’s Philip Swift used completed HODL waves to demonstrate a subtle increase in lower time waves, indicating that despite the price surge, the market is not experiencing the usual FOMO phenomenon as newer coins are exchanged.
The data also sheds light on the current state of holders’ profits. According to the Net Unrealized Profit or Loss (NUPL) indicator, most bitcoin holders are making profits. However, those who invested around the late 2021 peak are closely watching the potential breakeven point of $39,000 to realize gains.
Other data from CryptQuant indicates that only a small fraction, approximately 11.6%, of unspent transaction output (UTXO) is underwater at present. This suggests that most investors are currently profiting. Despite this optimistic sign for many holders, caution remains due to recent selling activity by large-scale investors, commonly referred to as “whales.” This behavior highlights the unpredictable nature of cryptocurrency markets and the importance of conducting thorough research before making investment decisions.
The RHODL Waves metric also indicates an incipient increase in coin circulation that could signal an early-stage bull market. However, it is worth noting that while most UTXO age brackets are profitable, those held for 18 months to three years have yet to see a profit.
As bitcoin maintains momentum above its previous bearish trading range, market participants continue to watch for signs of increased speculative interest that could lead to further price movements. The current landscape presents a mixed picture: a significant price recovery juxtaposed with cautious investor sentiment and a notable absence of widespread speculative trading.
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