Emily Walker
Bitcoin continues to maintain strong upward momentum, reaching unprecedented heights and hinting at further price increases as it approaches key resistance levels. While this recent surge has sparked optimism about its future, a sense of skepticism still prevails among many observers.
Ongoing Skepticism Despite Bitcoin’s Rise
Axel Adler Jr., a notable macro researcher and author at the on-chain analytics site CryptoQuant, has provided insights into the prevailing attitudes among investors regarding Bitcoin’s underlying stability. He recently discussed this sentiment on the social media platform X (formerly known as Twitter), capturing the attention of the investment community.
This commentary arises amidst Bitcoin’s recent achievement of a new all-time high, representing a significant phase in its growth trajectory. While the increase in BTC’s price is notable, Adler emphasized that some investor perspectives remain unchanged.
As noted by the macro analyst, skepticism about the longevity of this rally persists, suggesting ongoing doubt regarding the fundamentals supporting Bitcoin’s ascent. This indicates that, despite record price levels, critics continue to question whether Bitcoin’s expansion is genuinely founded on solid ground.
Adler recalls that even when Bitcoin was approximately $41,000 a year ago, skepticism was rampant. Now, despite its rise to about $106,000, doubts regarding the sustainability of this increase still linger.
This recurring skepticism suggests a perpetual cycle for Bitcoin, as both advocates and critics will always be present in the market. There will always be individuals who invest at low prices and sell at high values, alongside those who buy near market peaks only to sell at a loss or hold for extended periods. “That’s just how Bitcoin operates, and change seems unlikely,” asserted Adler.
Increasing Demand from New Bitcoin Investors
Despite lingering doubts, market sentiment has shifted towards optimism, highlighted by an uptick in demand from new Bitcoin investors. Adler noted that the current demand from new investors is 4% higher than in March, coinciding with Bitcoin’s ascent to $70,000.
Reflecting on the previous two cycles, Adler pointed out that demand peaked at 205% and 133% respectably. Currently, the demand metric in this cycle stands at 70%, with expectations of exceeding previous cycle highs.
The increase in interest from new investors represents a renewed confidence in Bitcoin’s potential in both the short and long term, supporting its bullish trend. If this upward momentum continues, it could serve as a crucial foundation for future price advancements.
As of now, Bitcoin is trading at $104,137, having experienced a nearly 3% dip over the last 24 hours. However, over the past week and month, the cryptocurrency has posted gains of around 6% and 13%, respectively.