{"id":132045,"date":"2020-04-30T06:00:48","date_gmt":"2020-04-30T05:00:48","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=132045"},"modified":"2020-05-01T22:35:30","modified_gmt":"2020-05-01T21:35:30","slug":"data-shows-that-the-ongoing-crypto-rally-could-be-highly-sustainable","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/data-shows-that-the-ongoing-crypto-rally-could-be-highly-sustainable\/","title":{"rendered":"Data shows that the ongoing crypto rally could be highly sustainable"},"content":{"rendered":"<p>Bitcoin saw a technically significant uptrend today that allowed it to erase virtually all of the losses resulting from the meltdown it faced in mid-March. Its $1,000 climb today sent shockwaves throughout the crypto market, leading many <a href=\"http:\/\/cryptoslate.com\/altcoins\">altcoins<\/a> to post <a href=\"http:\/\/cryptoslate.com\/coins\">notable gains<\/a>.<\/p>\n<p>This uptrend comes after what appears to be a month-long bout of extreme accumulation from investors, signaling that this uptrend has been driven primarily by retail investors.<\/p>\n<p>Data surrounding the number of wallets with a non-zero balance, as well as Bitcoin\u2019s dwindling open interest, both seem to confirm this notion.<\/p>\n<h2><strong>Bitcoin\u2019s uptrend reaches a boiling point as retail investors drive massive movement<\/strong><strong>\u00a0<\/strong><\/h2>\n<p>This latest uptrend appears to have been driven by significant buying pressure from retail investors, who met bears with enough strength to catalyze and intense rally that led BTC from lows of $3,800 to highs of just under $9,000 that were set today.<\/p>\n<p>There may be some fundamental factors playing into this movement as well, with Bitcoin\u2019s upcoming mining rewards halving coupled with the ongoing recovery seen throughout the traditional markets both playing in the favor of bulls.<\/p>\n<p>The cryptocurrency\u2019s ongoing recovery may also prove to be more stable than those seen in years past, as data regarding crypto investor\u2019s profitability signals that they widely engaged in \u201cdip buying\u201d throughout the past several weeks.<\/p>\n<p>Blockchain analytics platform <a href=\"https:\/\/cryptoslate.com\/companies\/glassnode\/\">Glassnode<\/a> spoke about this phenomenon in a <a href=\"https:\/\/twitter.com\/glassnode\/status\/1255556392942960641\">recent post<\/a>, explaining that the profitability of circulating <a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">BTC<\/a> has increased by 9 percent from the last time it was trading at this price.<\/p>\n<blockquote><p>\u201cThe overall Bitcoin market is now in a more profitable state than it was prior to the crash \u2013 indicating investors bought the dip. As BTC breaks past $8300, 73% of circulating BTC is in a state of profit \u2013 9% more than the last time we saw this price.\u201d<\/p><\/blockquote>\n<figure id=\"attachment_132046\" aria-describedby=\"caption-attachment-132046\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-132046 size-large\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/BitcoinProfitability-1024x576.jpg\" alt=\"Bitcoin: Percent Supply in Profit\" width=\"1024\" height=\"576\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/BitcoinProfitability-1024x576.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/BitcoinProfitability-300x169.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/BitcoinProfitability-768x432.jpg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/BitcoinProfitability.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-132046\" class=\"wp-caption-text\">Bitcoin: Percent Supply in Profit (Source: Glassnode)<\/figcaption><\/figure>\n<h2><strong>On-chain metrics point to notable retail investor-base growth<\/strong><strong>\u00a0<\/strong><\/h2>\n<p>While looking towards data regarding who has been heavily participating within the crypto market in recent times, it grows clear that retail investors played a prominent role in this movement.skew<\/p>\n<p>Data from blockchain intelligence platform <a href=\"https:\/\/cryptoslate.com\/companies\/skew\/\">Skew<\/a> shows that open interest on popular crypto trading platform Bitmex has been dwindling in recent times, plunging today as a result of the extensive short-position liquidations.<\/p>\n<figure id=\"attachment_132035\" aria-describedby=\"caption-attachment-132035\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-132035 size-large\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/skew_bitmex_xbtusd_oi-7-1024x572.png\" alt=\"BitMEX XBTUSD Open Interest\" width=\"1024\" height=\"572\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/skew_bitmex_xbtusd_oi-7-1024x572.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/skew_bitmex_xbtusd_oi-7-300x168.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/skew_bitmex_xbtusd_oi-7-768x429.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/skew_bitmex_xbtusd_oi-7.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-132035\" class=\"wp-caption-text\">BitMEX XBTUSD Open Interest (Source: Skew)<\/figcaption><\/figure>\n<p>This suggests a lack of engagement from active crypto traders.<\/p>\n<p>Couple this with the massive growth of BTC wallets with non-zero balances \u2013 per data from <a href=\"https:\/\/studio.glassnode.com\/metrics?a=BTC&m=addresses.NonZeroCount&mAvg=7&s=1547078400&u=1585439999&zoom=\">Glassnode<\/a> \u2013 and it grows clear that retail traders were the primary suspect behind this rally.<\/p>\n<figure id=\"attachment_132047\" aria-describedby=\"caption-attachment-132047\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-132047 size-large\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/Screen-Shot-2020-04-29-at-12.48.01-PM-1024x509.png\" alt=\"Bitcoin: Addresses with Non-Zero Balance\" width=\"1024\" height=\"509\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/Screen-Shot-2020-04-29-at-12.48.01-PM-1024x509.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/Screen-Shot-2020-04-29-at-12.48.01-PM-300x149.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/Screen-Shot-2020-04-29-at-12.48.01-PM-768x381.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/Screen-Shot-2020-04-29-at-12.48.01-PM.png 1379w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-132047\" class=\"wp-caption-text\">Bitcoin: Addresses with Non-Zero Balance (Source: Glassnode)<\/figcaption><\/figure>\n<p>Passive investors driving this movement does bolster Bitcoin\u2019s mid-term outlook, as it suggests that this uptrend may be more sustainable than those driven by margin traders.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin saw a technically significant uptrend today that allowed it to erase virtually all of the losses resulting from the meltdown it faced in mid-March. Its $1,000 climb today sent shockwaves throughout the crypto market, leading many altcoins to post notable gains. This uptrend comes after what appears to be a month-long bout of extreme [&hellip;]<\/p>\n","protected":false},"author":174,"featured_media":132063,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120,15323],"tags":[60786],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Data shows that the ongoing crypto rally could be highly sustainable<\/title>\n<meta name=\"description\" content=\"Data regarding the number of wallets with a non-zero balance, as well as Bitcoin\u2019s open interest, both confirm that this crypto rally has been retail-driven\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/data-shows-that-the-ongoing-crypto-rally-could-be-highly-sustainable\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Data shows that the ongoing crypto rally could be highly sustainable\" \/>\n<meta property=\"og:description\" content=\"Data regarding the number of wallets with a non-zero balance, as well as Bitcoin\u2019s open interest, both confirm that this crypto rally has been retail-driven\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/data-shows-that-the-ongoing-crypto-rally-could-be-highly-sustainable\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2020-04-30T05:00:48+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-05-01T21:35:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/bitcoin-marathon.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Cole Petersen\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Cole Petersen\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/data-shows-that-the-ongoing-crypto-rally-could-be-highly-sustainable\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/data-shows-that-the-ongoing-crypto-rally-could-be-highly-sustainable\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/#person\",\"name\":\"Cole Petersen\",\"url\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/11\/author-cole-petersen.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/11\/author-cole-petersen.jpg\",\"caption\":\"Cole Petersen\"},\"jobTitle\":\"Journalist\",\"description\":\"Cole is a freelance journalist and university student studying philosophy. 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He owns a non-life-changing sum of Bitcoin and enjoys day trading.","url":"https:\/\/cryptoslate.com\/author\/cole-petersen\/"}]}},"_links":{"self":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/132045"}],"collection":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/users\/174"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/comments?post=132045"}],"version-history":[{"count":7,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/132045\/revisions"}],"predecessor-version":[{"id":132251,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/132045\/revisions\/132251"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/media\/132063"}],"wp:attachment":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/media?parent=132045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/categories?post=132045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/tags?post=132045"},{"taxonomy":"prediction_market_topic","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/prediction_market_topic?post=132045"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/post_folder?post=132045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}