Last week, Bitcoin (BTC) closed at around $37,350, up 0.8% from the previous week’s closing price of $37,000. The BTC price opened with notable volatility on Tuesday, falling as low as $34,800, before making a strong recovery on Wednesday, reaching nearly $38,000. BTC then fell back to $36,000 on Thursday. There was an upward trend later in the week, with BTC ending the week around $37,350.
BTC Dominance, which measures Bitcoin’s market capitalization compared to the entire digital asset market, rebounded after falling for two consecutive weeks and settled at about 52.6%. This represents a 0.3% increase compared to the previous week and represents a slowdown in liquidity dispersion across the market after two weeks of strong momentum in the altcoin sector.
The recent increase in altcoin performance is confirmed by analysis of the Total3 indicator, which takes into account the total market capitalization of the top 125 altcoins. This indicator is currently at approximately $416.1 billion, the highest since August 2022. This followed a strong surge led by Bitcoin and ETF spot narratives in recent months, highlighting substantial positive momentum in the overall market to close the market cap. This is a level not observed since the UST-Luna collapse, which triggered a severe recession in early May 2022.
Confirming the upward trend, several BTC indicators show strong momentum. Approximately 80% of addresses currently holding Bitcoin are profitable, representing solid accumulation during the 2022 recession. Only about 20% of addresses have an average purchase price exceeding $37,000, confirming that a bottom is likely to occur in 2022. This phenomenon of long term holders accumulating from short term holders is common in the later stages of a bear market. Cycle floor is set. This is further supported by the BTC supply, which has not moved in the past 12 months (currently accounting for 70.2%), indicating the long-term commitment of most investors. Additionally, the Bitcoin illiquid supply indicator, which measures the supply held in wallets with minimal spending history, hit an all-time high of 15.4 million BTC. This is consistent with our initial assumptions depicting a recent surge in long-term holders who continued to accumulate assets rather than sell them during the 2022/2023 recession, with wallets showing minimal activity related to selling BTC.
Examining BTC on-chain activity reveals a positive trend. Daily trading volume, calculated on a 7-day average, was close to 575,000, bringing the total volume of BTC on-chain transactions to levels not seen since late June. Transaction fees remain relatively high at $4-$5, signaling an overall upward trend in on-chain activity beyond centralized exchanges and financial products. This means a balanced growth of structured activity and interest across different investor groups.
According to a recent report focusing on mining, USDT issuer Tether plans to invest $500 million in mining with the goal of acquiring approximately 1% of the total hashrate and entering the top 20 mining farms. Specifically, as reported by BitVeria, during the third quarter, power strategy miners reduced their average direct BTC production costs by 35%, from $21,100 to $13,800. This data highlights that the profitability of the mining sector is much stronger compared to the difficulties experienced during parts of 2022 and 2023.