3 Factors That Will Keep Bitcoin (BTC) in the Spotlight This September

• Long-term holders have pushed Bitcoin’s realized cap to $3 billion, showing strong confidence in the cryptocurrency’s future.

• The stablecoin supply ratio is signaling increased liquidity, which may drive a potential rally in Bitcoin.

Bitcoin has reclaimed the $61,000 level, marking a significant recovery after a week of bearish consolidation. At the time of writing this article, Bitcoin was trading at $60,679, which is a 4% rise over the last 24 hours. Currently, the market capitalization of the cryptocurrency has gone past $1.2 trillion, thus underlining the growth of investors’ confidence. The recent price rally has been coupled with a significant rise in trading volume, with Bitcoin’s daily volume rising by 31% to $29 billion. 

Long-Term Holder Realized Cap Surges to $3 Billion

The realized cap, the total cumulative realized profits minus losses, of Bitcoin has recently crossed the $3 billion mark. This figure depicts a big accumulation by long-term holders (LTHs), who hold the asset for six or more months. While short-term holders (STHs) are day traders who may respond to short-term price movements, the LTHs appear to be less concerned with prices at the moment. 

The actual cap at $3 billion is similar to the results recorded in December of 2023, implying that the long-term investors are quite confident. This positive net value suggests that LTHs are not only holding on to their coins but also increasing their holdings, which could be a good sign for Bitcoin’s future. 

Miners’ Selling Pressure Stabilizes

Bitcoin miners have been cashing out their coins through exchanges, which has put negative pressure on the Bitcoin price. However, recent data shows that this selling pressure has been constant for the last two weeks. The trend of miners’ reserves is indicating accumulation again, which can help hold the price of Bitcoin in its current range and may lead to an upward movement. 

The reduction in miner selling pressure in August is in line with another shift where miners are slowly moving from selling to hodling Bitcoin. This change could aid in reducing price fluctuations and support a more stable market environment that could pave the way for price hikes. 

Stablecoin Supply Ratio Signals Increased Liquidity

The stablecoin supply ratio (SSR) is another bullish signal for Bitcoin as it shows how much liquidity is available to buy assets such as BTC. The SSR has recently come down to the levels last observed in early February 2024, indicating that stablecoins are being supplied in the market for cryptocurrencies. This increased liquidity acts as a catalyst for a market rally as there are more stablecoins for buying Bitcoin and other assets. 

According to Julio Moreno, head of research at CryptoQuant, the stablecoin market cap has hit a new record high of $165 billion. Such high liquidity in the market could contribute to the initiation of a further Bitcoin price rally and strengthen the argument for a bullish breakout. 

The bullish momentum of Bitcoin has had a ripple effect across the broader cryptocurrency market. According to CoinMarket Cap, the global cryptocurrency market capitalization has increased by 3.41% in the past 24 hours, now standing at $2.4 trillion.