Recent price fluctuations in Bitcoin driven by geopolitical tensions have drawn investor attention, impacting overall market dynamics.
Short-Term Price Fluctuations in Bitcoin
Bitcoin dipped to $99,000 during geopolitical tensions, but the short-term cost basis at $98,300 held strong, allowing the asset to rebound to $107,000 after the ceasefire. Analysts view this as a bullish signal.
Long-Term Investment Trends
According to Glassnode data, long-term conviction in Bitcoin is growing. The number of dormant coins—those untouched for over 155 days—hit a record 14.7 million BTC, and their 'liveliness' metric continues to fall, indicating a shift towards long-term holding. Wallets that purchased Bitcoin during January's breakout above $100,000 are maintaining their holdings.
Analysis of Institutional Investments
On the institutional side, capital flows into Bitcoin ETFs remain strong, with a seven-day average of $298 million in net inflows. Combined with stablecoin reserves near their baseline, this suggests a healthy balance of buying power and liquidity. Analysts note that stablecoin capital has steadily rotated into major assets over the past month, pointing to sustained institutional engagement.
The reluctance of existing holders to sell combined with stable ETF demand suggests that the next price surge could trigger the next phase of Bitcoin's market cycle.
