CryptoQuant shares reasons behind Bitcoin’s $70k recovery
The CryptoQuant platform author shared their opinion on the return of the Bitcoin price above $70,000 after several weeks of correction.
According to the expert, the price of Bitcoin (BTC) recovered after several weeks for several reasons. First, the crypto market saw a significant portion of investors’ profits for $2.7 billion, while selling pressure weakened as holders of short-term bonds ceased to realize the losses from the price correction.
Another reason for recovering the first cryptocurrency is the release of several billion stablecoins USDT last week.
“New USDT has been minted, and as you can see, there is a strong correlation between the market cap of USDT and the price of Bitcoin.”
CryptoQuant experts
Another significant trend contributing to Bitcoin’s recovery is the massive influx of BTC into savings addresses, as Bitcoin reserves have reached an all-time high.
The Bitcoin price jumped to $72,000 today, while the Fear and Greed Index reached 76 points, meaning there is ‘extreme greed’ among BTC traders. Many experts agree that BTC is rising for two key reasons: the upcoming halving in April and continued interest in spot Bitcoin ETFs.
The excitement is also noticeable in the influx of capital into cryptocurrency investment products. From March 30 to April 5, inflows amounted to $646 million. Since the beginning of the year, total receipts have reached a record $13.8 billion.
