Bitcoin has recently attained a new peak, reaching $42,210 on the Bitstamp exchange. This notable surge in value marks a significant milestone for the cryptocurrency, with an impressive year-to-date (YTD) increase of 154.60%.
Indicating bullish sentiment
One of the key indicators pointing to bullish sentiment among investors is the 10%+ annualized basis noted by Deribit.
This basis, which represents the discrepancy between spot and future prices, suggests a projected rise of 10-12% in Bitcoin's value.
It is a critical measure for traders, as it allows them to lock in returns by selling futures while simultaneously purchasing spot BTC, effectively mitigating the risk associated with price fluctuations.
Such a strategy not only reflects optimism on the market but also provides a strategic advantage in navigating the volatile cryptocurrency landscape.
Long-term holders stand firm
Further reinforcing the optimistic outlook is the behavior of long-term Bitcoin holders. According to data from IntoTheBlock, despite Bitcoin breaking the $40,000 mark, these steadfast investors have not been cashing out.
Instead, they have increased their holdings, collectively acquiring over 360,000 BTC since early November. This group now controls more than 13.8 million BTC, signifying a strong belief in the long-term value and stability of Bitcoin. This steadfastness among long-term investors serves as a testament to their confidence in Bitcoin's future prospects.
Adding to the bullish narrative, there is a noticeable increase in the average trade size on U.S. exchanges, as reported by Kaiko. This change suggests that larger trades have become more common since September.