CryptoQuant platform creator shared his thoughts on the return of Bitcoin price above $70,000 after several weeks of correction.
According to experts, the price of Bitcoin (BTC) recovered in a matter of weeks for several reasons. First, while the cryptocurrency market accounted for a significant portion of investor returns of $2.7 billion, selling pressure weakened as short-term bond holders failed to recognize losses from the price correction.
Another reason for the return of the original cryptocurrency is the launch of billions of stablecoin USDT last week.
“New USDT has been minted, and as you can see, there is a strong correlation between the market capitalization of USDT and the price of Bitcoin.”
Crypto Quant Expert
Another important trend contributing to Bitcoin’s recovery is the massive inflow of BTC into deposit addresses as Bitcoin holdings reach record highs.
Today, the price of Bitcoin surged to $72,000 and the Fear-Greed Index reached 76 points, indicating the presence of ‘extreme greed’ among BTC traders. Many experts agree that BTC is rising for two main reasons: the scheduled halving in April and continued interest in spot Bitcoin ETFs.
It is also noticeable that capital is flowing into cryptocurrency investment products. From March 30 to April 5, inflows reached $646 million. Total revenues since the beginning of the year have reached $13.8 billion.