Market intelligence firm Santiment has evaluated three crucial metrics that suggest a potential rise in Bitcoin's future.
Wallet Returns and Token Mobility
Santiment's data shows that the average returns on active wallets have hovered around -2.9% over the past 30 days. This indicates a favorable time for increasing positions in Bitcoin if returns remain below 0%. Moreover, it has been observed that older Bitcoin tokens are moving at a healthy pace, signaling market vibrancy and momentum.
Decline in Exchange Supply Indicator
There has been a significant decline in the supply of Bitcoin on exchanges over the past months, attributed to the transfer of coins to cold wallets. This drop from 9.92% to 7.6% indicates potential new market movements.
Conclusion: Monitoring the Market
The analysis underscores the importance of closely tracking market movements and risk management. Evaluating indicators like wallet returns, token mobility, and exchange supply together can provide a protective approach against unforeseen market fluctuations.
Investors should monitor market dynamics to make informed investment decisions.
