Bitcoin's potential record-breaking price rise might be hindered by this specific hurdle
In the world of cryptocurrency, Bitcoin continues to make headlines as its price approaches all-time highs. According to data from CryptoQuant, Bitcoin's price is currently near its peak, with a BTC Z-Score of +1.5σ, indicating a bullish phase historically associated with high S2F readings.
The Activity-Price Divergence (APD) remains at -1.5, suggesting that price growth is outpacing on-chain activity. However, recent improvements in on-chain activity are noteworthy. On-chain activity has improved with new addresses up 25.47% and active addresses up 11.11% in a week. This growth expands the user base, deepens liquidity, and strengthens market resilience.
The Miners' Position Index (MPI) is currently at -0.46, indicating miner outflows are below their yearly average. This reduction in miner-led supply pressure can help maintain market stability during periods of heightened volatility.
The scarcity narrative of Bitcoin's supply may potentially fuel further upside momentum. If sustained, increased on-chain activity could narrow the price-activity gap and fortify long-term price support.
Key drivers of Bitcoin's price momentum include institutional adoption, ETF inflows, regulatory clarity, macroeconomic trends, and geopolitical developments. Large institutional players are increasingly using Bitcoin as a strategic reserve asset, contributing to strong price momentum. DeVere Group forecasts Bitcoin could hit $150,000 by 2025 mainly due to this institutional demand and related regulatory support in the U.S. that legitimizes Bitcoin further.
Regulatory policies enabling more institutional involvement, such as retirement accounts holding Bitcoin and corporate balance sheet integration, enhance investor confidence, which supports sustained price appreciation and momentum. Lower interest rates, dollar weakness, and inflation fears push investors toward Bitcoin as a hedge, augmenting demand from both retail and institutional sectors.
Independent analysis points to a roughly 35-month Bitcoin cycle from bear-market lows to peaks, with the next cycle top expected around October 2025. This cyclical behavior reflects investor psychology and capital flows, reinforcing momentum patterns even independent of fundamentals.
Recent price rallies are partly driven by Asian trading sessions and increasing investor interest in the U.S., supporting higher prices and momentum into 2025. Zero-balance addresses have fallen 2.69%, indicating more wallets hold BTC, which further strengthens the scarcity narrative.
The Stock-to-Flow (S2F) ratio has surged to 1.5923 million, marking a 75% increase. This surge suggests that the supply of new Bitcoins is becoming increasingly scarce, which could further fuel price momentum.
In summary, Bitcoin’s price momentum is driven by institutional adoption, regulatory advancements, macroeconomic conditions, and market cycle dynamics, while increasing on-chain activity provides fundamental support by evidencing growing network usage and demand that can underpin long-term price stability and upward trends.
- Investors are increasingly using cryptocurrency wallets, as indicated by a 2.69% decrease in zero-balance addresses, suggesting more wallets hold Bitcoin.
- The DeVere Group forecasts that Bitcoin's price could reach $150,000 by 2025, primarily due to increased institutional demand and supportive regulations in the U.S.
- The Miners' Position Index (MPI) indicates a reduction in miner-led supply pressure, with a current reading of -0.46, which can help maintain market stability during periods of heightened volatility.
- In the world of finance, technology, and investing, Bitcoin's token price is experiencing a surge, with the Stock-to-Flow (S2F) ratio marking a 75% increase, indicating an increasingly scarce supply of new Bitcoins, which could further fuel price momentum.
