ARK Invest’s latest monthly report notes that, although Bitcoin (BTC), on-chain is still net positive, two important support levels are needed to maintain a bullish trend.
What does Bitcoin’s healthy on-chain metrics mean?
Its reportARK Invest argues that Bitcoin’s market structure must be preserved. According to the report, BTC dropped by $8.7% in August 2024 and reached $58,972. It was also not able to break through its 200 day moving average. Two key areas of support at $52,000, and $46,000 were critical in maintaining its positive momentum.
This report notes that Bitcoin’s on-chain is still healthy, despite temporary challenges. remains ‘net positive.’ The Bitcoin network has a net positive outlook across various on-chain metrics, such as security, usage and holder behaviour.
Bitcoin’s Long-Term Holder Supply, which is BTC that holders have held longer than 155 calendar days, has increased by 3.3% MoM and decreased marginally by 0.23% YoY. Bitcoin’s lock supply also increased both in MoM terms and on a YoY basis by 0.58%.
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Bitcoin’s on-chain indicators are bearish. The transaction volume of Bitcoin has fallen by 24.5% MoM & 2.3% YoY. Bitcoin’s on-chain metrics are bullish, and overshadow one of the bearish indicators, so its overall on-chain health is still positive.
The short-to long-liquidation ratio is another key indicator that supports ARK Invest’s bullish stance towards Bitcoin. This metric is a measure of short-term versus long-term liquidity over the past 90 days. It has been at its lowest level since Q2 2023.
Bitcoin ETF Investors Underwater At Large
Report highlights the fact that by the end of 2024 the estimated cost base of US exchange-traded funds (ETFs) was higher than BTC, indicating that average ETF investors may suffer a loss. Chart below confirms the higher estimated cost base of US spot ETF investors compared with its price.
US Securities and Exchange Commission approved Spot Bitcoin ETF was launched earlier this year. It allowed institutional investors and retail investors alike to get exposure to Bitcoin, the largest cryptocurrency in the world through an investment product that is compliant.
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Bitcoin ETFs enjoy unprecedented interest among institutional investors. Wall Street giants like Goldman Sachs, Morgan Stanley and others have invested millions in Bitcoin ETFs. Ethereum ETFs, on the other hand, haven’t been popular. Then, there are those who say that piqued Interest in institutions at similar levels.
Bitcoin was trading for $57,836 at the time of publication, up only 0.2% from 24 hours ago. BTC has a total market capitalization of $1.14 trillion.
Images from Unsplash and charts from Tradingview.com, ARK Invest
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Source: www.newsbtc.com
