Bitcoin and other major cryptocurrencies show signs of a recovery following last week’s rapid dip, driven primarily by macroeconomic factors.
Over the past week, Bitcoin prices have fallen 4%, reaching a weekly low of $112,000, with Bitmex co-founder Arthur Hayes warning that ongoing macroeconomic pressures can push BTC back into the $100,000 range.
However, Maksym Sakharov, co-founder and CEO of Wefi, said Encryption That the correction was a natural result of the overheating market.
According to Sakharov, Bitcoin’s impressive bull run ran for the past month, followed by a record high, dropping prices almost as expected. The market he added was simply taking a breather before continuing its upward momentum.
Already, the market is once again showing signs of strength, with all other major assets, including Bitcoin, Ethereum, Solana and BNB, recovering and gradually beginning to show rebound.
In particular, XRP stands out among the top 10 digital assets, rising more than 5% in the last 24 hours, surpassing the $3 mark after temporarily trading under it over the weekend.
On-chain data shows continuous demand
Despite recent DIP, market analysts are optimistic about Bitcoin’s long-term future.
Cryptoquant contributor AbramChart stressed that Bitcoin’s Bull Run is pretty far from over as long-term holders (LTHS) continue to show confidence in top crypto.
Analysts say the net unrealized profit/loss (NUPL) indicator is above 0.5, indicating that Bitcoin is still profitable for many investors.
In support of this view, another analyst, Darkfost, noted that demand for Bitcoin continues to be strong.
He noted that there is an increase in Bitcoin addresses that accumulate without selling, and that these addresses over the past month have accumulated an average of 50,000 BTC. This sustained purchasing behavior supports the notion that demand for assets remains strong.
Additionally, charts tracking “apparent demand” comparing the amount of inactive coins over a year with new Bitcoin issuance shows a positive trend.
Over the past 30 days, approximately 160,000 BTC has been absorbed by long-term holders, further confirming the market’s resilience.
Wefi’s Sakharov concluded that these patterns suggest that recent revisions to Bitcoin are only part of a wider cycle. He is confident that assets are on track to reach new highs due to structural demand and long-term investors’ convictions.