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Bitcoin has again touched exclusive price highs. As per CryptoQuant, Bitcoin has surpassed the $90,000 spot, indicating a historic high due to which new participants are flooding into the market.
Bitcoin Exceeds the Price Level of $90K, Leading to the Engagement of New Investors
In a recent report, a CryptoQuant analyst going by “ShivenMoodley” highlighted Bitcoin’s new achievement of exceeding $90,000. As per the analyst, this move denotes a spike in many chief indicators such as Unspent Transaction Output (UTXO) Age Bands. As a result of this, a new wave of activity and interest is emerging in the Bitcoin sector. Hence, the latest investors are swarming the market to leverage Bitcoin’s exclusive spike.
The analyst mentioned that the steep rise in Bitcoin’s UTXO Age Bands suggests the engagement of the newly entering participants. UTXO Age Bands serve as a metric that tracks the age of $BTC tokens that are kept by the holders. The respective surge in younger $BTC age bands points toward new purchasers who are enthusiastic to join the bull run.
The Spent Output Profit Ratio is another such indicator which is also standing in a positive position. It means that the present movement of Bitcoin between addresses is generating gains for sellers. In line with this, the majority of the transfers maintain a higher spot in comparison with the cost basis. Such a scenario often goes in line with the overall surging market momentum.
In the meantime, long-term Bitcoin holders appear unmoved by the historic highs of Bitcoin. Rather they maintain their positions irrespective of the high valuation of the chief crypto token. Nonetheless, the analyst reveals an approaching risk because the derivatives market of Bitcoin is reportedly becoming significantly overleveraged.
The Investors Swarm in the Derivatives Markets Amid Bitcoin’s Ongoing Bull Market
With the price rise, investors have moved toward derivatives in great numbers, particularly in the case of options markets. In these markets call contracts have witnessed a noteworthy growth over the last 2 months. In the call contracts, bets are made on the continuity in the price rise of Bitcoin. According to the CryptoQuant analyst, the respective increase concerning the leveraged positions focuses on the potential persistence of a “mania phase.” This period often showcases volatility, speculation, and excitement.