**Crypto Insights: What Lies Ahead for Bitcoin? Analysis Firm Highlights Key Metric**
Exciting prospects may be on the horizon for Bitcoin, according to the cryptocurrency analytics firm CryptoQuant. Here are the key insights.
**Author:** Mete Demiralp
**Date:** 24.09.2024 – 16:37
**Update:** 7 seconds ago
Bitcoin (BTC) has surged nearly 8% following the Federal Reserve’s decision to cut interest rates by 50 basis points. This upward movement is noted by CryptoQuant, which points to a significant market indicator suggesting further potential gains.
The metric in focus, referred to as the “supply in profit,” assesses the portion of Bitcoin’s circulating supply that was acquired at prices lower than its current market value. An increase in this percentage signals that a greater number of holders are in profit, potentially alleviating selling pressure and bolstering market confidence.
Julio Moreno, Director of Research at CryptoQuant, highlighted that Bitcoin’s recent price surge has propelled it above its 365-day moving average—a crucial threshold within the supply-to-profit metric. “This pivotal moment typically correlates with continued price appreciation,” Moreno remarked, indicating that Bitcoin may maintain its upward trajectory.
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The supply-in-profit level often acts as an emotional barometer for investors, serving as an essential support or resistance point, as noted in CryptoQuant’s recent blog entry. “When the price surpasses this level, investor optimism tends to rise; conversely, if it dips below, selling pressure may increase,” the post elaborated.
*Please note that this is not investment advice.*
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