The CryptoQuant platform’s analysts recently discussed the resurgence of Bitcoin’s price, which has surged back above $70,000 following a period of correction lasting several weeks.
According to the experts, Bitcoin (BTC) has rebounded for a variety of reasons. Firstly, the crypto market witnessed a significant profit-taking by investors totaling $2.7 billion, coupled with a decrease in selling pressure as short-term bond holders refrained from realizing losses during the price correction.
Moreover, the release of several billion stablecoins USDT last week has also played a role in the recovery of the leading cryptocurrency.
Another key factor contributing to Bitcoin’s revival is the substantial increase in BTC being moved to savings addresses, resulting in an all-time high in Bitcoin reserves.
Today, the price of Bitcoin surged to $72,000, accompanied by a Fear and Greed Index score of 76, indicating ‘extreme greed’ among BTC traders. Many experts attribute Bitcoin’s rise to two main factors: the upcoming halving in April and the continued interest in spot Bitcoin ETFs.
Furthermore, there has been a noticeable surge in capital flowing into cryptocurrency investment products, with inflows totaling $646 million from March 30 to April 5. Year-to-date, total inflows have reached a record $13.8 billion.
In a related development, CryptoQuant reported that Bitcoin exchange reserves have hit a record low, indicating a strong bullish sentiment in the market.