Key Points
- Bitcoin’s price surged past $70,000, trading close to $72k, with a 3.9% increase within the last 24 hours.
- Stablecoin Supply Ratio Oscillator (SSRO) and other market metrics indicate a resurgence in demand for Bitcoin.
Bitcoin has finally managed to surpass the $70,000 resistance, currently trading around the $72k mark. This significant increase in price, 3.9% within the last day, has brought a lot of attention to the cryptocurrency.
This recent price surge comes amidst a general increase in demand. Various market metrics suggest that investors are starting to regain their confidence in Bitcoin.
SSRO Indicates High Demand
CryptoQuant analyst BinhDang pointed out that the demand for Bitcoin is experiencing a revival. This is evident from the Stablecoin Supply Ratio Oscillator (SSRO) data. The SSRO measures Bitcoin’s market cap in comparison to stablecoins like USDT, USDC, BUSD, and so on. This data provides insights into the buying demand driven by these stablecoins.
BinhDang’s analysis of the SSRO data shows an increase in stablecoin-driven buying interest. This kind of trend was also observed when Bitcoin hit its lowest point in late 2022. Currently, Bitcoin’s 90-day SSRO shows a resurgence in quarterly demand, surpassing the positive 2-point mark.
Other Metrics Show Strengthening Fundamentals
In addition to price movements, Bitcoin’s fundamental metrics are also showing signs of strength. Data from Glassnode shows an increase in active BTC addresses in recent weeks, suggesting more participants are entering the market. By late October, active addresses exceeded 760,000, up from below 700,000 a few days earlier.
This fluctuation indicates shifting market engagement, with the latest increase implying renewed interest. This often correlates with bullish price action. More activity across addresses means more transactions are happening on the Bitcoin network, often a favorable indicator of rising demand and market activity.
Furthermore, Bitcoin’s Open Interest, tracked by Coinglass, increased by 8.85% to reach $42.56 billion. This surge, particularly notable as it rose by 118.55% in volume to $80.43 billion, shows higher participation from futures and derivatives traders.
An increase in Open Interest usually indicates more capital flowing into the market. This can create momentum and push prices higher as traders position themselves to capitalize on Bitcoin’s next potential move.
