Overview

Bitcoin’s market capitalization has recently exceeded $2 trillion, marking its highest point since the end of January. While new investors are showing strong interest, seasoned traders remain cautious, indicating a possible consolidation of prices.

Bitcoin’s Market Cap BTC’s $2T market cap triggers a wave of first-time buyers. (StockSnap/Pixabay)

Key Points

• Bitcoin (BTC) experienced a surge, surpassing $100,000 last Thursday and its market capitalization for the first time since January 31.
• After this achievement, it has stabilized above the $2 trillion level, with analysts predicting further increases due to forthcoming U.S. inflation data.

New investors tend to enter the market during bullish phases, indicative of FOMO (Fear of Missing Out). This trend typically leads to impulsive purchasing, driven more by emotion than rational analysis.

Market Insights

“BTC Supply Mapping shows sustained strength in new demand. First-Time Buyers RSI has held at 100 all week,” stated Glassnode.

BTC Supply Mapping BTC: RSI of cumulative supply per cohort. (Glassnode)

Glassnode’s analytics reveal that first-time buyers’ wallets signal strong buying volition. However, caution emerges as the momentum buyer cohort shows weak activity.

According to Glassnode, with the demand from momentum traders at an RSI of 11, their ability to capitalize on trends remains underwhelming, suggesting a potential price retreat might occur.

Overall, the landscape presents a mixed picture: enthusiasm from new buyers contrasts with hesitation from experienced traders, potentially leading to market stabilization.