- Bitcoin price is trading above the $99,000 price level.
- CryptoQuant report found an increase in Bitcoin permanent holder demand.
Bitcoin is struggling to reach its previous $100,000 price level while the broader crypto market recorded a 1.61% rise in market cap. Further worsening the market scenario, the crypto fear and greed index entered the fear zone. On the other hand, altcoins are also struggling to reclaim their price levels recorded in December 2024.
Bitcoin Permanent Holder demand is accelerating.
— CryptoQuant.com (@cryptoquant_com) February 7, 2025
Historically, this signals strong confidence and often precedes rallies. pic.twitter.com/o2xPydbUhi
One of the leading on-chain data analytics platforms CryptoQuant found an interesting metric regarding Bitcoin. It posted on X stating that the Bitcoin permanent holder demand is increasing despite the present market dip. This is an intriguing indicator, bringing renewed hopes to BTC investors. CryptoQuant further emphasized the fact that this indicator signals strong confidence and can lead to price a rally.
Bitcoin permanent holders are a group of investors who accumulate Bitcoin over a long time. And, frequent BTC transactions have no place in their long-term holding strategy. Furthermore, the Bitcoin permanent holder demand indicator does not include exchanges and mining pool addresses.
Bitcoin Price is Inching Closer to the $100K
Bitcoin is trading at $99,710, slightly less than the $100,000 mark. It is recording a 1.56% rise in the last 24 hours and is signaling a positive market momentum at press time. The price uncertainty triggered by Trump’s new tariffs took a toll on Bitcoin price this week.
However, the increase in Bitcoin permanent holder demand combined with increase in institutional investment is accelerating BTC price. On the regulation front, more US states are moving forward with the Bitcoin reserve strategy, having a pro-crypto environment in the US government.
The Bitcoin reserve bill is in its final state in Utah. And, a state representative from Missouri introduced the Bitcoin reserve bill. Bitcoin will soon gain the status of an essential global asset to boost economies across the world.
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