Bitcoin price surges to record $77,000, on-chain metrics support continued growth
The Lookonchain report highlights that Bitcoin’s current price surge is supported by strong fundamentals
Bitcoin's price has reached a new all-time high of $77,000, driven by a confluence of positive on-chain metrics. As the world’s largest cryptocurrency continues its upward trajectory, market analysts believe that current on-chain data indicates the potential for sustained growth.
According to CoinGape, several key on-chain indicators suggest that Bitcoin’s current rally is not yet exhausted. Among these indicators is the growing number of active addresses, which has reached levels not seen since the last bull run in late 2021. Additionally, Bitcoin’s hash rate has surged to a record high, indicating robust network security and miner confidence.
The Lookonchain report highlights that Bitcoin’s current price surge is supported by strong fundamentals. For instance, the ratio of Bitcoin supply held by long-term holders has increased, suggesting that investors remain confident in the asset’s future price appreciation. Moreover, the percentage of Bitcoin supply that hasn’t moved in over a year has also hit an all-time high, demonstrating a high level of hodling behavior among investors.
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What’s Driving the Price Surge?
The recent spike in Bitcoin’s price can be attributed to several macroeconomic and market-specific factors. Analysts point to renewed institutional interest, especially after Trump's presidential election victory and the Fed's 25 percentage point cut in the benchmark rate. Additionally, growing fears of inflation and concerns over the global economic outlook are driving investors to Bitcoin as a hedge against traditional market volatility.
The combination of strong on-chain metrics, increased institutional involvement, and macroeconomic uncertainty has set the stage for Bitcoin’s continued growth. However, experts caution that despite the current bullish momentum, market volatility remains a factor to watch. The $80,000 resistance level is now in focus, with analysts predicting that breaking through this level could propel Bitcoin to even greater heights.
As the cryptocurrency market continues to evolve, stakeholders are closely monitoring how on-chain metrics and external economic conditions will influence Bitcoin’s price trajectory. For now, the market appears to be favoring the bulls, but caution is advised as the landscape remains highly dynamic.
It's also worth noting that Tom Lee advocates Bitcoin as a hedge against U.S. Treasury bonds to alleviate U.S. debt concerns
