The Bitcoin Risk-Off signal has fallen to 23.7, its lowest level since March 2019, indicating a low correction risk and a high potential for a bullish trend. The signal, which evaluates correction risk using onchain and exchange data, is currently in the blue zone, historically signaling a low correction risk and a bullish trend possibility. In 2019, a similar signal preceded a massive 1,550% rally that propelled Bitcoin above $68,000 in 2021. Data from CryptoQuant shows that the Risk-Off signal combines six metrics to provide a balanced view of correction risk, making it a reliable gauge for market trends. The launch of spot Bitcoin exchange-traded funds (ETFs) in the US in 2024 attracted institutional capital, leading to increased demand and price stability. Institutional adoption has reshaped Bitcoin’s market, with ETFs and public companies now holding 9% of the Bitcoin supply. Fidelity Digital Assets data reveals that Bitcoin’s volatility has significantly decreased, making it less volatile compared to equity indexes. The maturing market can now absorb capital inflows with minimal price disruption. Mainstream adoption, regulatory clarity, and Bitcoin’s role as an inflation hedge have contributed to its increased value since 2019. The Macro Chain Index (MCI) recently flashed a buy signal, indicating a potential rally above $100,000 soon. Despite a decline in Bitcoin’s network activity index, macro indicators remain bullish, suggesting a strategic entry point for long-term investors. This article does not offer investment advice, and readers are encouraged to conduct their research before making any investment decisions.
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