- Bitcoin faced challenges from the macroeconomic situations developing in the U.S.
- The on-chain clues showed that long-term investors can remain confident of further gains.
Bitcoin [BTC] was trading just 3% below its all-time high, but has shown signs of fatigue recently. The Asian market rally on the 9th of June helped the crypto market, but a dip in Open Interest signaled that caution was warranted.
News of rising core CPI inflation and the 0% chance of the Fed introducing a rate cut next week soured the bullish sentiment. On the other hand, the bullish conviction of long-term investors appeared healthy based on on-chain metrics.
Source: CryptoQuant Insights
In a post on CryptoQuant Insights, user Crypto Dan pointed out that Net Realized Profit and Loss were much tamer than levels seen in November-December 2024.
Profit-taking was present but noticeably reduced, reflecting whale expectations of higher Bitcoin prices.
The analyst concluded that it was highly likely that we would see new all-time highs this cycle.
Accumulation back underway for Bitcoin?
Even a couple of years ago, the idea of Bitcoin experiencing an accumulation phase around the $110,000 mark would have been absurd, at least to non-crypto enthusiasts.
However, the price action and increasing institutional adoption would vindicate long-term bulls, except BTC purists.
The 365-day Mean Coin Age has been trending higher throughout 2025. The early June price dip to $105k left a sizable dent on the metric. This, alongside the huge spike in the age consumed, suggested a wave of BTC movement on-chain.
This would likely have been for selling purposes. However, over the past ten days, the MCA has begun to trend higher, even as the price marched toward its ATH once more.
This signaled network-wide accumulation. The 7 DMA of the age consumed showed that the final week of May saw sustained token movement that rivaled the November-December 2024 levels.
Following the massive spike on the 2nd of June, the age consumed metric has been relatively quiet.
Therefore, it was reasonable for Bitcoin to continue to trend higher. Euphoria and market-wide profit-taking that generally mark cycle tops were not here yet.
