By Matteo Greco, Research Analyst at publicly traded digital asset and fintech investment firm Fineqia International
Analyzing the BTC supply, about 68.5% of the total circulating supply has remained untouched for at least a year, approaching an all-time high. In addition, BTC’s hashrate, which indicates computing power on the blockchain network, has reached an all-time high on a 7-day moving average.
These statistics highlight the resilience of Bitcoin. Long-term holders are increasing in number, reflecting a shift towards holding the asset for long-term appreciation rather than for profit. At the same time, increased competition among miners, despite the impending halving of mining rewards in a few months, demonstrates a strong commitment to network security and profitability.
On a macro scale, US Consumer Price Index (CPI) data for September due out on Thursday is expected to show inflation at 3.6%, slightly lower than August’s 3.7%. Market participants do not expect any further interest rate hikes from the US Federal Reserve (FED) and are predicting a 78.9% chance of keeping interest rates at current levels.
Bitcoin (BTC) closed last week at around $27,900, down 0.3% compared to the previous week’s closing value of $28,000. BTC price showed stability, briefly touching $27,160 midweek before recovering to around $27,500, eventually approaching the $28,000 mark over the weekend.
BTC continues to show strength compared to other digital assets, with its dominance up 0.5% for the second week in a row. Bitcoin dominance, which measures the relationship between Bitcoin’s market capitalization and the total market capitalization of digital assets, currently stands at 50.9%. This marks a sharp trend increase from 50.4% a week ago and 49.9% two weeks ago.
BTC price stability combined with increasing dominance signals a less favorable week for alternative digital assets. This pattern is confirmed by the Total3 metric, which reflects the total market capitalization of digital assets excluding Bitcoin (BTC) and Ethereum (ETH), which fell from $334.7 billion to $327.3 billion at the start of previous week.
In terms of trading volume, cumulative spot volume on central exchanges, estimated at a 7-day moving average, reached $12.34 billion from October 2-8. This marks a marked uptick in trading activity compared to any point in the previous four weeks, reversing a three-month downtrendactivity.