Key Points
- Bitcoin’s ETF inflows and miner profitability indicators suggest a potential continuation of BTC’s upward price momentum.
- Active addresses and rising open interest volume indicate strong market activity, despite mixed derivatives data.
Bitcoin’s Price Momentum: ETFs and Miners’ Role
The steady increase in the price of Bitcoin (BTC) has been a topic of interest, with many trying to decipher the factors driving this momentum. CryptoQuant analyst, Amr Taha, has identified a correlation between Bitcoin ETF net flows and Miner Profit/Loss Sustainability, which could be influencing Bitcoin’s price movements.
Taha’s analysis reveals that large positive net flows often occur near market peaks, suggesting that when capital flows into Bitcoin ETFs, it can lead to upward price pressure. Conversely, capital outflows may result in downward pressure. The Miner Profit/Loss Sustainability chart helps track whether Bitcoin miners are operating profitably based on the difference between Bitcoin prices and miners’ operating costs.
Active Address Growth and Market Data
Apart from ETF and miner-related metrics, data from Glassnode showed that Bitcoin’s network activity has picked up recently. Active Bitcoin addresses increased from 630,000 on the 16th of October to over 719,000 by the 22nd of October, indicating greater user engagement and transactional activity on the BTC network.
On the other hand, Bitcoin’s Open Interest, the total value of outstanding derivative contracts, has decreased by 3.17% to a press time valuation of $39.36 billion. But, Bitcoin’s Open Interest volume has surged by 55.69%, reaching $68.28 billion, suggesting a possible buildup of market activity in anticipation of significant price movements.