CryptoQuant Bitcoin Analysis Signals Potential for Further Gains

Key points:

• Bitcoin’s price has increased nearly 8% following the U.S. Federal Reserve’s rate cut, with the “supply in profit” metric crossing its 365-day moving average, a key signal for potential further gains, according to CryptoQuant.
• However, Bitfinex analysts caution that while the recent uptick was initially driven by spot market buying, a slowdown in this activity may lead to consolidation or a partial correction in the near term.

CryptoQuant bitcoin analysis shows an 8% price rise after the Fed rate cut, with the “supply in profit” metric indicating further gains, but analysts urge caution amid slowing spot activity.

CryptoQuant Bitcoin Analysis Highlights Price Gains Post-Fed Cut

According to CryptoQuant’s analysis, bitcoin’s price jumped almost 8% following the Federal Reserve’s 50 basis-point rate cut. The “supply in profit” metric has climbed above its 365-day moving average, which might indicate additional gains could be witnessed as more holders are in profit.

Analysts at Bitfinex caution, however, that the buying of the digital currency in the spot market has indeed slowed, which may translate into consolidation or partial correction. Bitcoin exchanged hands at roughly $63,516 at the time of publication.

Read more: Bitcoin Bull Run Continues Despite Potential Bearish Patterns, Says CryptoQuant CEO

Bitcoin’s “Supply in Profit” Metric Signals Continued Growth

While Ethereum ETFs suffered heavy outflows, spot Bitcoin ETFs continued to attract net inflows with a gain of $4.56 million on Monday. Leading the inflows was Fidelity’s FBTC with inflows of $24.93 million and BlackRock’s IBIT with $11.54 million inflows.

However, Grayscale’s GBTC lost $40.33 million against these inflows led by the other Bitcoin ETFs. Despite these movements, the total trading volume for the 12 Bitcoin ETFs dropped to $949.72 million.