After a week-long consolidation with a few corrections below $90,000, bitcoin’s bull run resumed yesterday, and the asset charted a fresh peak of just over $94,000.
On-chain and social data indicated that the asset’s rally could be far from over, and the question arises of whether it has the legs to go to the coveted $100,000 level.
BTC’s ATH Driven by…?
CryptoPotato reported yesterday’s price surge that pushed BTC to just shy of $94,000, but it climbed minutes later to $94,040 (on CoinGecko), which is the current all-time high. Many experts suggested that the primary reasons behind this surge are related to US-based ETFs.
On the one hand, the spot Bitcoin ETFs have continued to see massive demand, with over $1 billion of net inflows in the first two days of the business week. On the other, the launch of the BlackRock iShares Bitcoin Trust (IBIT) yesterday also saw significant volumes. Bloomberg’s ETF expert, James Seyffart, commented, “These options were almost certainly part of the move to the new Bitcoin all-time highs today.”
On the matter of whether BTC could continue to rally, Santiment published a chart demonstrating that the current FOMO levels are nowhere near close to the euphoria after Donald Trump’s victory in the 24 US presidential elections two weeks ago.
Generally, high levels of FOMO lead to corrections, as it happened last week, but the landscape seems a lot healthier now.
Bitcoin’s new all-time high now sits at $94,002, and the commentary across social media could be described as luke-warm at best. The lack of euphoria is an encouraging sign, as FOMO typically leads to corrections. As long as there is retail trader disbelief, whales can… pic.twitter.com/PovcZidNcp
— Santiment (@santimentfeed) November 19, 2024
The Healthier Landscape
Even before BTC’s peak and the confirmation of weak FOMO, the analytics platform noted that the long-term indicators for bitcoin and the rest of the market look “quite sound.”
This is shown by the Mean Dollar Invested Age line. The metric is declining, showing that the “average age of all tokens stagnantly moving in the same wallets is getting “younger.””
“In any long-term bull market, it is necessary for older, dormant coins continuously moving back into circulation. This has been the most evident case of this since the initial flow of stagnant whale coins began moving aggressively back in October, 2020.” – concluded Santiment.
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