• Bitcoin addresses holding 0.1 BTC have climbed considerably since the asset’s price sustained above $20,000. 
  • Institutional investors poured $117 million into crypto investment products in a single week, with the vast majority going straight into Bitcoin. 
  • Bitcoin on-chain indicators have flipped bullish, supporting the thesis that there is further bullish potential in BTC in the ongoing cycle. 

Bitcoin on-chain data over the last 90 days shows bullish signals. Bitcoin holders selling over the past three months have been at a consistent profit, while demand for BTC among institutions and retail investors has increased steadily. 

The market points at the end of a Bitcoin bear market and a new cycle with bullish potential for BTC price. 

Also read: Why the demand for Ethereum is high despite rising gas fees, is it time to buy?

Bitcoin demand among retail and institutional investors climbs

Bitcoin addresses holding 0.1 BTC or less grew slowly in 2022, but 2023 shows the return of trader optimism. The BTC network added 620,000 small Bitcoin addresses since the FOMO returned on January 13 when the price hit the $20,000 level. 

Crypto intelligence tracker Santiment marked the return of small investors to Bitcoin in the chart below:

Bitcoin addresses pop-up rapidly on the blockchain

Bitcoin addresses pop-up rapidly on the blockchain 

Interestingly, retail investors' enthusiasm is shared by institutional investors over the past week. $117 million headed into crypto investment products in a single week, with a large chunk of capital going straight into Bitcoin. 

According to a CoinShares report, Bitcoin took home the lion’s share of investment with $115.6 million flowing into BTC. The return of institutional investors’ enthusiasm is matched with on-chain metrics that flipped bullish recently. 

Bitcoin on-chain metrics signal further bullish potential in BTC

On-chain metric Bitcoin Realised HODL (RHODL) Multiple noted an upswing and has been in a sustained uptrend throughout the past 90 days. This indicator identifies whether Bitcoin holders selling during a fixed period of time are selling at a profit or loss. 

RHODL Multiple has flipped bullish with sellers during the past three months selling at a consistent profit. This demonstrates there is an uptick in demand by new investors in BTC. 

Bitcoin RHODL Ratio

Bitcoin RHODL Ratio 

Bitcoin Supply in Profit is a metric that tracks the “paper profit” or unrealized profit of BTC that last moved when USD-denominated prices were lower than they are right now. This on-chain indicator shows that BTC supply in profit has climbed over the last 30 days. 

The Supply in Profit indicator has increased by over 20 percent since the beginning of 2023. This implies that larger and longer-term investors currently hold profitable on-paper spot positions. 

BTC Supply in Profit

BTC Supply in Profit

This is healthy for the latter half of a bear market as a sustained 30-day uptrend after a prolonged downtrend on this indicator has historically provided a good buy signal for the following two years.

Based on on-chain indicators and rising demand among both institutions and retail investors, it is a good time to buy Bitcoin at the end of the bear market.  


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

NEAR protocol could see a rally as it sets out to launch an AI smart contract builder

NEAR protocol could see a rally as it sets out to launch an AI smart contract builder

Near protocol (NEAR) co-founder Illia Polosukhin stated in a social media post on Wednesday plans for NEAR to launch NEAR AI, a user-owned AI system that will allow users to build web3 apps without code on an end-to-end network.

More Near News

US House of Reps passes bill aiming to regulate cryptocurrencies

US House of Reps passes bill aiming to regulate cryptocurrencies

FIT21 bill received massive support as the House of Representatives voted to pass the bill on Wednesday. The White House and US Securities & Exchange Commission (SEC) Chair, Gary Gensler, expressed concerns about the potential impact of the FIT21 bill on investor protections in a statement.

More Cryptocurrencies News

Ethereum bulls await ETF approval as BlackRock, Bitwise, Grayscale submit amended ETH ETF filings

Ethereum bulls await ETF approval as BlackRock, Bitwise, Grayscale submit amended ETH ETF filings

Ethereum (ETH) is trading sideways on Wednesday as BlackRock, Bitwise and Grayscale submitted their amended 19b-4s filings to the Securities & Exchange Commission (SEC). The agency has also begun conversations with issuers on S-1s applications.

More Ethereum News

As Ethereum spot ETF approval nears, these altcoins could explode

As Ethereum spot ETF approval nears, these altcoins could explode

It is not surprising that altcoins related to Bitcoin saw a major rally post-Bitcoin spot ETF approval. Likewise, tokens closely related to Ether could ride the ETF approval wave. Ethereum Classic, Pepe, Floki and other DeFi tokens could gain momentum as the ETH ETF approval deadline nears. 

More Cryptocurrencies News

Bitcoin: Is BTC out of the woods? Premium

Bitcoin: Is BTC out of the woods?

Bitcoin price shows signs of continuing its uptrend, providing a buying opportunity between $64,580 to $63,095. On-chain metrics forecast a bullish outlook for BTC ahead. If BTC clears $70,000, the chances of resuming the uptrend would skyrocket.

Read full analysis

BTC

ETH

XRP