Bitcoin’s been holding its own lately, staying above important support levels even after its recent dip from record highs. While the market’s a bit gloomy, Bitcoin’s price is surprisingly steady, giving investors some hope.
A Trillion-Dollar Store of Value?
Adding to the positive news, the CEO of CryptoQuant recently revealed some interesting data. By combining different types of data (both on and off the Bitcoin network), they estimate that a whopping $1.03 trillion is now stored on the Bitcoin network! That’s a huge increase, and it really strengthens the idea that Bitcoin is a solid store of value – just like many experts have been saying. This is especially important given the current economic uncertainty.
How Did They Get That Number?
This isn’t just the market cap ($2 trillion), which is different. They figured this out by looking at a few things:
- Off-chain exchange transactions: They looked at how much money is flowing into exchanges and multiplied that by the average price.
- On-chain data: They used information about over-the-counter (OTC) trades and deposits/withdrawals from exchanges. Bitcoin’s system is unique because transactions happen instantly, making it easier to track capital flow.
- Realized cap: This looks at the actual cost of all the Bitcoins moving around on the blockchain.
By combining all this data, they created a “SoV Index” (Store of Value Index) to get a clearer picture of how much money is actually being stored in Bitcoin.
Bitcoin’s Price: What to Watch
Bitcoin’s currently trading around $93,600 after a bit of a price drop. While this recent dip has some people worried, there are key price levels to watch:
- Above $100,000:
Breaking through this level and holding it as support would be a very bullish sign, potentially leading to a significant price increase. - $92,000 – $90,000: If Bitcoin falls below this range, it could signal a more serious correction, potentially pushing the price lower.
Essentially, these price levels will determine Bitcoin’s short-term direction. The market’s still reacting to a lot of outside factors, so keeping an eye on these key levels is crucial.
