Bitcoin Reached New Peaks: Is a Continuation of the Rally Expected?

Bitcoin Continues Its Rise

In recent days, Bitcoin has attracted attention with a dazzling rise. The cryptocurrency reached an all-time high of $125,700 over the weekend, and then surpassed $126,000 yesterday, setting a new record. However, this peak was temporary, and as of today, Bitcoin has declined to $124,000.

Macroeconomic Effects and ETF Inflows

Bitcoin's strong ascent is linked to various macroeconomic factors such as the U.S. government's shutdown process, record levels of spot ETF inflows, and a decrease in exchange supply. Jean-David Péquignot, who serves as the trading director at Deribit for Coinbase, commented: "ETF demand tightens supply, while seasonal optimism and geopolitical turmoil position BTC as the primary hedge against inflation."

Spot ETF Inflows and Market Levels

According to recent data, U.S. Bitcoin ETFs recorded $3.2 billion in inflows last week. This total represents the second-highest influx since their launch at the beginning of 2024. However, some analysts view Bitcoin’s price increase as concerning. Experts are worried that company inflows are supporting this growth and that the current situation creates uncertainty regarding future profit expectations.

Network Activity and Investor Reaction

As Bitcoin’s price rises, a decrease in the number of active users on the network has been observed. According to an analysis by CryptoQuant, the price increase is shaped more by speculative trading activities and the influence of major investors than by widespread market enthusiasm. The report emphasizes that "sustainable price increases need to be supported by new user influx and organic demand," as the daily number of active wallet addresses has approached its lowest level since April 2020.

Conclusion

Bitcoin reaching new peaks raises investor interest to high levels, while the decline in user activity on the network is noteworthy. It is anticipated that the cryptocurrency's performance in the future will be shaped by macroeconomic factors and investor sentiment.