CryptoQuant: Despite Current Correction, Bitcoin Retains Growth Potential If Demand Persists
In Brief
CryptoQuant analyst Carmelo_Alemán notes that despite Bitcoin’s recent correction, on-chain indicators and steady miner behavior suggest potential for further growth if demand remains strong.
Cryptocurrency market analyst Carmelo_Alemán from research firm CryptoQuant provided a market update indicating that Bitcoin’s recent price decline has raised questions about whether the market is approaching a cycle peak or experiencing a natural correction. On-chain trends indicate continued accumulation by long-term holders alongside falling exchange reserves, pointing to limited selling pressure.
According to the analyst, historically, Bitcoin’s bullish phases have included sharp corrections before reaching new highs, with institutional adoption, spot exchange-traded funds (ETFs), and advancements in tokenization and DeFi forming the backdrop for further expansion. Key indicators such as the Network Value to Transactions ratio (NVT), which has remained below 50 since July 7 and reflects robust on-chain activity, suggest underlying strength. Meanwhile, the Market Value to Realized Value ratio (MVRV) has not reached levels typically associated with cycle tops, indicating the absence of overheating despite recent gains.
Miner reserves remain steady at around 1.805 million BTC, reflecting only a modest reduction of 6,000 BTC since the beginning of the year. Unlike in previous cycle peaks, there has not been a wave of miner selling, which supports the view that upward momentum may still be possible. Another indicator, the Adjusted Spent Output Profit Ratio (aSOPR), helps track periods of potential overvaluation.
When the ratio remains above 1 for an extended time, it signals that most transferred coins are being moved at a profit, and persistent elevated levels have historically coincided with phases of market exuberance and cycle tops.
Taken together, these signals suggest that while Bitcoin is currently correcting, the broader outlook continues to point to room for growth provided that demand remains strong.
Bitcoin Trades Around $108,000 As Inflation Data And Whale Sell-Offs Weigh On Market Sentiment
At the time of writing, Bitcoin is trading at $108,628, reflecting a 0.17% gain in the past 24 hours, with prices ranging between $107,310 and $109,830, according to CoinMarketCap.
Over the weekend, Bitcoin, Ethereum, and other leading cryptocurrencies moved lower as market participants weighed macroeconomic indicators ahead of the upcoming Federal Open Market Committee (FOMC) meeting.
The decline followed the release of July’s Personal Consumption Expenditures report, which showed core inflation rising 2.9% year-over-year, marking the highest level since February.
Although the figure matched expectations, it reinforced concerns over persistent inflation, reducing the likelihood of a September rate cut. These conditions, combined with large Bitcoin whale sales that led to the liquidation of leveraged positions, contributed to a cautious market mood.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
