Bitcoin has risen by 7% over the past 24 hours, despite indicators pointing to bearish sentiment and declining demand in the US.
Market Contradictions
The analytics platform CryptoQuant reports that all Bitcoin valuation metrics indicate a bear market stage. Bitcoin's market cycle indicator is at its 'most bearish level' for this cycle.
Factors Influencing Bitcoin Growth
Bitcoin's 7.5% increase over the past 24 hours is linked to the stabilization of the US market following recent declines. Most gains are attributed to Senator Cynthia Lummis' reintroduction of the BITCOIN Act, proposing the US government purchase of 1 million BTC over five years.
Decline in Bitcoin Demand
Bitcoin demand fell by 103,000 BTC over the past week compared to the previous week. This decline is attributed to uncertainty around US inflation rates and imposed tariffs. CryptoQuant notes that demand remains in contraction territory despite ongoing price growth.
Despite the temporary rise in Bitcoin, the market is showing mixed signals, and analysts warn of potential price reversals.
